Problem 13-66 (Algo) Comprehensive Budget Plan (LO 13-3, 4, 5) Lone Products manufoctures o popular kitchen utensil. The company recently exponded, and the controlier beleves that it will need to borrow cash to continue operotions, It opened negotiations with the local bank for a one-month loan of 558,000 starting March 1 . The bank would charge interest at the rate of 0.5 percent per month and require the company to repty interest and principal on March 31 In considering the loon, the bank requested a projected income stotement and cash budget for March. The following information is ovelilable: - The compory budgeted soles of 21,000 units per month in February. Aprili and Moy and at 18,000 units in March. The selling price is 569 per unit. - The company offers a 2 percent discount for cosh sales. The company's experience is that bad debts average 1 percent of credit soles - The inventory of finished goods on Februory 1 wos 3.300 units. The desired finished goods inventory at the end of each month equals 25 percent of soles onticipated for the following month. There is no work in process. - The inventory of row moterials on Februory 1 was 2730 pounds. At the end of each month, the raw materials inventory equals no less thon 20 percent of production requirements for the following month. The company purchases materials in quantities of 295 pounds per shipment - Selling expenses are 6 percent of gross soles. Administrative expenses. which include depreciation of $1200 per month on office furniture and fixtures, totol $73.800 per month. - The manufacturing budget for the utensil, based on normal production of 20,000 units per month follows. furniture and fixtures, total $73,800 per month: - The manufocturing budget for the utensil, based on normal production of 20.000 units per month, follows Required: a.1. Prepare schedules computing inventory budgets by months for production in units for February, March, and April. a.2. Prepare schedules computing inventory budgets by months for raw materials purchases in pounds for February ond March. b. Prepare a projected income statement for Morch. Cost of goods sold should equal the variable manufacturing cost per unit times the number of units sold plus the total fixed manufacturing cost budgeted for the period. Assume that 40 percent of sales are cash sales. Complete this question by entering your answers in the tabs below. Prepare schedules computing inventory budgets by months for production in units for February, March, and April. Prepare schedules computing inventory budgets by months for raw materials purchases in pounds for February and March. Prepare a projected income statement for March. Cost of goods sold should equal the variable manufacturing cost per unit times the number of units sold plus the total fixed manufacturing cost budgeted for the period. Assume that 40 percent of sales are cash sales. Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar