• Projected unit sales: June sales 120,000, July sales 130,000, August 140,000, September 150,000 and October sales 170,000.
• Sales price per unit, $15.00
• Units in ending inventory each month should equal 10% of next month sales.
• Raw material required per unit is 2 pounds; cost is $3.00 per lb.
• Ending inventory required at the end of each month is 5% of next month needs.
• Direct labor required to produce one units is .25 direct labor hour. The hourly rate is $10.00.
• Sales and administrative expenses are projected to be: salaries $275, 000 per month, commissions 2% of sales dollars and other expenses are expected to be $75,000 per month plus 3% of sales dollars.
• Forty percent of the sales are collected in the month of sales and 60 percent in the month following.
• Thirty percent of raw materials purchases are paid in in the month of purchase and 70 percent in the month following.
• Manufacturing overhead costs:
  • Indirect labor, $3.00 per direct labor hour,
  • Indirect materials are $1.00 per unit produced,
  • Utilities are $1.00 per direct labor hour,
  • Maintenance cost are $0.50 per direct labor hour,
  • Supervisor salaries are $40,000 per month,
  • Depreciation is $10,000 per month,
  • Property taxes are $5,000 per month,
  • Insurance is $7,000 per month, and
  • Fixed maintenance cost is $10,000 per month.
• Other pertinent information:
  • Beginning cash balance is $100,000
  • Beginning accounts payable balance is $530,000.

For the quarter ending September 30th provide answers for the following:

7. Ending finished goods inventory in dollars
8. Ending cash balance at September 30th
9. Contribution margin,
10. Net operating income,
11. Breakeven sales dollars,
12. Sales dollars needed to earn a net operating income of $400,000,
13. Ending accounts receivable balance,
14. Predetermined manufacturing overhead rate using direct labor hours as the activity,
15. Ending accounts payable balance for raw materials.