Problem Sales, production, purchases, and cash budgets Freese Inc. is in 14.26 the process of preparing the fourth quarter budget for 2019, and the following data have been assembled: LO4, 5, 7 . The company sells a single product at a price of $50 per unit. The estimated sales volume for the next six months is as follows: Pago 554 September. . 26,000 units 24,000 units 28,000 units December 40,000 units January........ 18,000 units February .. . . . . . 20,000 units All sales are on account. The company's collection experience has been that 33%% of a month's sales are collected in the month of sale, 65%% are collected in the month following the sale, and 21% are uncollectible. R is expected that the not realizable value of accounts receivable (in, accounts receivable less allowance for uncollectible accounts) will be $845,000 on September 30. 2019. Management's policy is to maintain ending finished goods inventory each month at a level equal to 40% of the next month's budgeted sales. The finished goods inventory on September 30, 2019, is expected to be 9.600 units. To make one unit of finished product, five pounds of materials are required. Management's policy is to have enough materials on hand at the and of each month to equal 30'%% of the next month's estimated usage. The raw materials inventory is expected to be 38,400 pounds on September 30, 2019. The cost per pound of raw material is $4, and 75% of purchases are paid for in the month of purchase; the remainder is paid in the following month. The accounts payable for raw material purchases is expected to be $126,600 on September 30, 2019. Required: a. Prepare a sales budget in units and dollars, by month and in total, for the fourth quarter (October, November, and December) of 2019. b. Prepare a schedule of cash collections from sales, by month and in total, for the fourth quarter of 2019. c. Prepare a production budget in units, by month and in total, for the fourth quarter of 2019 d. Prepare a materials purchases budget in pounds, by month and in total, for the fourth quarter of 2019. Prepare a schedule of cash payments for materials, by month and in total, for the fourth quarter of 2019