Raymond Company manufactures Widgets. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation:

1. The Marketing Department has estimated sales as follows for the remainder of the year (in units):

July 40,500 October 30,500

August 91,000 November 17,000

September 60,000 December 17,500

The selling price of the widgets is $12 per unit.

2. All sales are on account. Based on past experience, sales are collected in the following pattern:

30% in the month of sale

70% in the month following sale

Sales for June totaled $480,000.

3. The company maintains finished goods inventories equal to 15% of the following months sales. This requirement will be met at the end of June.

Required:

1. Prepare a sales budget, by month and in total, for the third quarter.
2. Prepare a schedule of expected cash collections, by month and in total, for the third quarter.
3. Prepare a production budget, by month and in total for the third quarter.