Soprano Co, is in the process of preparing the second quarter budget for 2016, and the following data have been assembled . The company sells a single product at a selling price of $42 per unit. The estimated sales volume for the next six months is as tollows: March April Ma 6,300 units 7.100 units 10.100 units June July August 8,400 units 9.400 unita 6,100 units * 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 recelvable i.e., accounts receivable less allowance for uncollectible accounts) will be $134,946 on March 31, 2016 Management's policy is to maintain ending rinished goods inventory each month at a level equal to 55% of the next month's budgeted sales. The finished goods inventory on March 31 2016 is expected to be 3,905 units. To make one unit inished Product 4 xunds of rnalenals are required Manac errent s polic is ID have enough rrialerials an hand at the en af each month to equal 44% of the next month s estimated usage. The raw materials inventory is expected to be 15,400 pounds on March 31, 2016 The cost per pound of raw material is $5.00 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 $36,597 on March 31, 2016 Required a. Prepare a sales budget in units and dollars, by month and in total, or the second quarter (April, May, and June) of 2016 Total April Ma une Expected sales in units Selling price per unit Total sales 25.600 42 $298,200 424.200352,8001,075,200 7,100 10.100 8,400 42 $ 42 $ b. Prepare a schecule of cash collections from sales, by month and in total, for the second quarter of 2016 Total Cash collections from: March sales April sales May sales June sales Tolal cash collections April $ 134,946 134,946 277,326 394,506 148,176 $260,190 S 330,246$ 364,518 S 954,954 125,244 152,082 178,164 216,342 148,176 c. Prepare a production budget in units, by month and in total, for the second quarter of 2016. Total April May June Beginning inventory of finished goods Units to be produced Goods available for sale Desired ending inventory of tinished goods Quantity of goods 3.905 8,750 12.855 5.555 7.100 5,555 9,165 14,720 4,620 10,100 4,620 3,905 26,865 30 770 5.170 25.600 13,570 5,170 8,400 d. Prepare a materials purchases budget in pounds, by month and in total, for the second quarter of 2016. (Do not round intermediate calculations.) Total April May June Beginning inventory of raw materials Purchases of raw materials Raw materials available for use Desired ending inventory of raw materisls Quantity of raw materials to be used in production 15,400 30.776 46,176 17,776 28,400 e. Prepare a schedule of cash payments for materials, by month and in total, for the second quarter of 2016. (Do not round intermediate calculations.) Cash payments for: March purchases April purchases May purchases June purchases Total cash payments May Total April 0 $