Q.1Furniture, Inc., estimates the following number of mattress sales for the first five months of 2005: Month Sales January 5,000 February 7,000 March 6,500 April 8,000 May 10,000 The selling price is $10 per unit Required. Prepare Sales Budget from the above data in the first quarter. Q.2 Note: After the preparation of sales budget. You have to use such information to prepare expected cash collection budget. All sales are on account. Furniture's collection pattern is: 60% collected in the month of sale, 30% collected in the month following sale, 10% uncollectible. The December 31, 2004 accounts receivable balance of $5,000 will be collected in full. Required: Prepare Expected Cash Collection Budget Q. 3 Furniture, Inc., estimates the following number of mattress sales for the first five months of 2005: Month Sales January 5,000 February 7,000 March 6,500 April 8,000 May 10,000 Finished goods inventory at the end of December is 1,500 units. Target ending finished goods inventory is 30% of the next month's sales. Q.4 Prepare Production Budget in the first quarter (January, February, March) of 20X5? Q.4 Furniture, Inc., estimates the following number of mattress sales for the first five months of 2005: Month Sales January 5,000 February 7,000 March 6,500 April 8,000 May 10,000 At Furniture Inc. 10 KGs of material are required per unit of product. Management wants materials on hand at the end of each month equal to 15% of the following month's production. On December 31, 2004 3,000 pounds of material are on hand. Material cost is $0.90 per KG. Required: Prepare the Direct Material Budget