Problem 14-25 (Algo) Sales, production, purchases, and cash budgets LO 14-4, 14-5, 14-7 Soprano Company is in the process of preparing the second quarter budget for 2022 , and the following data have been assembled: - The company sells a single product at a selling price of $43 per unit. The estimated sales volume for the next six months is as follows: - All sales are on account. The company's collection experience has been that 42% of a month's sales are collected in the month of sale, 51% are collected in the month following the sale, and 7% are uncollectible. It is expected that the net realizable value of accounts receivable (i.e., accounts receivable less allowance for uncollectible accounts) will be $138,159 on March 31,2022. - Management's policy is to maintain ending finished goods inventory each molnth at a level equal to 55% of the next month's budgeted sales. The finished goods inventory on March 31, 2022, is expected to be 3,850 units. - To make one unit of finished product, 3 pounds of materials are required. Management's policy is to have enough materials on hand at the end of each month to equal 42% of the next month's estimated usage. The raw materials inventory is expected to be 10.899 pounds on March 31, 2022. - The cost per pound of raw material is $6.00, and 76% of all purchases are paid for in the month of purchase; the remainder is paid in the following month. The accounts payable balance for raw material purchases is expected to be $32,444 on March 31,2022. Required: a. Prepare a sales budget in units and dollars, by month and in total, for the second quarter (April, May, and June) of 2022. b. Prepare a schedule of cash collections from sales, by month and in total, for the second quarter of 2022 . c. Prepare a production budget in units, by month and in total, for the second quarter of 2022. d. Prepare a materials purchases budget in pounds, by month and in total, for the second quarter of 2022. e. Prepare a schedule of cash payments for materials, by month and in total, for the second quarter of 2022. sale, 51% are collected in the month following the sale, and 7% are uncollectible. It is expected that the net realizable value accounts receivable (i.e., accounts recelvable less allowance for uncollectible accounts) will be $138,159 on March 31,2022 - Management's policy is to maintain ending finished goods inventory each month at a level equal to 55% of the next month' budgeted sales. The finished goods inventory on March 31, 2022, Is expected to be 3,850 units. - To make one unit of finished product, 3 pounds of materials are required. Management's policy is to have enough materials at the end of each month to equal 42% of the next month's estimated usage. The raw materials inventory is expected to be pounds on March 31, 2022. - The cost per pound of raw material is $6.00, and 76% of all purchases are paid for in the month of purchase; the remainde in the following month. The accounts payable balance for raw material purchases is expected to be $32,444 on March 31 , Required: a. Prepare a sales budget in units and dollars, by month and in total, for the second quarter (Aprili, May, and June) of 2022. b. Prepare a schedule of cash collections from sales, by month and in total, for the second quarter of 2022. c. Prepare a production budget in units, by month and in total, for the second quarter of 2022. d. Prepare a materials purchases budget in pounds, by month and in total, for the second quarter of 2022. e. Prepare a schedule of cash payments for materials, by month and in total, for the second quarter of 2022. Complete this question by entering your answers in the tabs below. - Management's policy is to maintain ending finished goods inventory each month at a level equal to 55% of the next month's budgeted sales. The finished goods inventory on March 31, 2022, is expected to be 3,850 units. - To make one unit of finished product, 3 pounds of materials are required. Management's policy is to have enough materials on hand at the end of each month to equal 42% of the next month's estimated usage. The raw materials inventory is expected to be to, 899 pounds on March 31, 2022. - The cost per pound of raw material is $6.00, and 76% of all purchases are paid for in the month of purchase; the remainder is paid in the following month. The accounts payable balance for raw material purchases is expected to be $32,444 on March 31,2022 . Required: a. Prepare a sales budget in units and dollars, by month and in total, for the second quarter (April, May, and June) of 2022. b. Prepare a schedule of cash collections from sales, by month and in total, for the second quarter of 2022. c. Prepare a production budget in units, by month and in total, for the second quarter of 2022. d. Prepare a materials purchases budget in pounds, by month and in total, for the second quarter of 2022. e. Prepare a schedule of cash payments for materials, by month and in total, for the second quarter of 2022. Complete this question by entering your answers in the tabs below. Prepare a schedule of cash collections from sales, by month and in totisil, for the second quarter of 2022. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollars. budgeted sales. The finished goods inventory on March 31, 2022, is expected to be 3,850 units, - To make one unit of finished product, 3 pounds of materials are required. Management's policy is to have enough materials on hand at the end of each month to equal 42% of the next month's estimated usage. The raw materials inventory is expected to be 10,899 pounds on March 31, 2022. - The cost per pound of raw material is $6.00, and 76% of all purchases are paid for in the month of purchase; the remainder is paid in the following month. The accounts payable balance for raw material purchases is expected to be $32,444 on March 31,2022 . Required: a. Prepare a sales budget in units and dollars, by month and in total, for the second quarter (April, May, and June) of 2022 b. Prepare a schedule of cash collections from sales, by month and in total, for the second quarter of 2022 . c. Prepare a production budget in units, by month and in total, for the second quarter of 2022 . d. Prepare a materials purchases budget in pounds, by month and in total, for the second quarter of 2022. e. Prepare a schedule of cash payments for materials, by month and in total, for the second quarter of 2022. Complete this question by entering your answers in the tabs below. Prepare a production budget in ults, by month and in total, for the second quarter of 2022 . Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollars. - To make one unit of finished product, 3 pounds of materials are required. Management's policy is to have enough materials on hand at the end of each month to equal 42% of the next month's estimated usage. The raw materials inventory is expected to be 10,899 pounds on March 31, 2022. - The cost per pound of raw material is $6.00, and 76% of all purchases are paid for in the month of purchase; the remainder is paid in the following month. The accounts payable balance for raw material purchases is expected to be $32,444 on March 31,2022. Required: a. Prepare a sales budget in units and dollars, by month and in total, for the second quarter (April, May, and June) of 2022. b. Prepare a schedule of cash collections from sales, by month and in total, for the second quarter of 2022. c. Prepare a production budget in units, by month and in total, for the second quarter of 2022. d. Prepare a materials purchases budget in pounds, by month and in total, for the second quarter of 2022. e. Prepare a schedule of cash payments for materials, by month and in total, for the second quarter of 2022. Complete this question by entering your answers in the tabs below. Prepare a materials purchases budget in pounds, by month and in total, for the second quarter of 2022. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollars. - To make one unit of finished product, 3 pounds of materials are required, Management's policy is to have enough materials on hand at the end of each month to equal 42% of the next month's estimated usage. The raw materials inventory is expected to be 10,899 pounds on March 31, 2022 . - The cost per pound of raw material is $6.00, and 76% of all purchases are paid for in the month of purchase; the remainder is paid In the following month. The accounts payable balance for raw material purchases is expected to be $32,444 on March 31,2022 . Required: a. Prepare a sales budget in units and dollars, by month and in total, for the second quarter (April, May, and June) of 2022. b. Prepare a schedule of cash collections from sales, by month and in total, for the second quarter of 2022 . c. Prepare a production budget in units, by month and in total, for the second quarter of 2022 . d. Prepare a materials purchases budget in pounds, by month and in total, for the second quarter of 2022. e. Prepare a schedule of cash payments for materials, by month and in total, for the second quarter of 2022. Complete this question by entering your answers in the tabs below. Prepare a schedule of cash payments for materials, by month and in total, for the second quarter of 2022. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollars