The accounting team at Vaughn Corp. plans to get a jump$-$start on its budget for the second quarter, since the first quarter is going well. Team members want to make sure to determine the cash effects of the company's sales as well as its biggest production$-$related cash expenditure, direct materials. The team has gathered the following information:

The budgeted selling price for the year is $$3\mathrm{.}40$ per unit. Sales volumes are budgeted as follows for the last month of quarter $1,$ for all of quarter $2,$ and for part of quarter $3.$

$\backslash$table$[[$March$,$April,May,June,July,August$],[26,80,21,300,23,600,27,500,25,100,23,300]]$

Historically, $25\%$ of Vaughn's sales are cash sales. Of the remaining credit sales, $40\%$ are collected in the month of sale, while $56\%$ are collected the following month. The remainder is deemed uncollectible.

Management sets its ending FG Inventory goal at $10\%$ of the following month's sales volume. The accounting team expects this policy will be met at the beginning of the second quarter.

The target ending inventory for Vaughn's primary direct material is $20\%$ of the following month's production needs, since it's not unusual for suppliers to stock out of this key resource. Each completed unit requires $4$ pounds of DM at an expected cost of $$0\mathrm{.}30$ per pound.