The company would like to maintain an ending stock of wood equal to 20% of the next month's production requirements.

So 20% of the following month will equal the: Desired Ending Inventory

Birdfeeders Plus makes backyard birdfeeders. The company sells the birdfeeders to home improvement stores for $20 per birdfoeder. Each birdfeeder requires 20 board foot of wood, which the company obtains at a cost of $3 per board foot. The company would like to maintain an ending stock of wood equal to 20% of the next month's production requirements. 1 i Data Table i More Info Units In any given month, 20% of the total sales are cash sales, while the remainder are credit sales. 87,000 80,000 October actual sales (prior year) November actual sales (prior year) December actual sales (prior year) January projected sales... February projected sales March projected sales. April projected sales. 73,000 75,000 93,000 100,000 103,000 The company's collection history indicates that 60% of credit sales is collected in the month after the sale, 30% is collected two months after the sale, 5% is collected three months after the sale, and the remaining 5% is never collected Assume that the total cost of direct materials purchases in December was $520,000. The company pays 40% of its direct materials purchases in the month of purchase, and pays the remaining 60% in the month after purchase. Print Done Print Done sun Birdfeeders Plus makes backyard birdfeeders. The company sells the birdfeeders to home improvement 2.0 board feet of wood, which the company obtains at a cost of $3 per board foot. The company would lik next month's production requirements. Requirement 1. Prepare the sales budget for the first three months of the year, as well as a summary bud Birdfeeders Plus Sales Budget For the Quarter Ended March 31 January February March Quarter Unit salos Multiply by: Sales price per unit Total sales revenue Cash sales Credit sales Total sales revenue Requirement 2. Prepare the production budget for the first three months of the year, as well as a summary bu Birdfeeders Plus Production Budget For the Quarter Ended March 31 January February March Quarter Unit sales Plus: Desired ending Inventory Total needed Less: Beginning Inventory Units to produce Requirement 3. Prepare the direct materials purchases budget for the first three months of the year, as well as a Birdfeeders Plus Direct Materials Budget For the Quarter Ended March 31 Enter any number in the edit fields and then continue to the next question. Requirement 3. Prepare the direct materials purchases budget for the first three months of the year, as well as a summary budge Birdfeeders Plus Direct Materials Budget For the Quarter Ended March 31 January February March Quarter Units to be produced Multiply by: Quantity (board feet) of DM needed per unit Quantity (board foet) needed for production Plus: Desired ending Inventory of DM Total quantity (board feet) nooded Less: Beginning inventory of DM Quantity (board feet) to purchase Multiply by: Cost per board foot Total cost of DM purchases Requirement 4. Prepare the cash collections budget for January, February, and March, as well as a summary for the first quarter. Review the sales budget prepared in Requirement 1. Birdfeeders Plus Cash Collections Budget For the Quarter Ended March 31 January February March Quarter Cash sales in current month Collections on credit sales: 60% of credit sales made one month ago 30% of credit sales made two months ago 5% of credit salen made three months ago Total cash collections Requirement 5. Prepare the cash payments budget for direct materials purchases for the months of January, February, and March, as Review the direct materials budget prepared in Requirement 3 Birdfeeders Plus Cash Payments for Direct Materials Budget For the Quarter Ended March 31 January February March Quarter 40% of current month DM purchases 60% of last month's DM purchases Total cash payments Birdfeeders Plus makes backyard birdfeeders. The company sells the birdfeeders to home improvement stores for $20 per birdfoeder. Each birdfeeder requires 20 board foot of wood, which the company obtains at a cost of $3 per board foot. The company would like to maintain an ending stock of wood equal to 20% of the next month's production requirements. 1 i Data Table i More Info Units In any given month, 20% of the total sales are cash sales, while the remainder are credit sales. 87,000 80,000 October actual sales (prior year) November actual sales (prior year) December actual sales (prior year) January projected sales... February projected sales March projected sales. April projected sales. 73,000 75,000 93,000 100,000 103,000 The company's collection history indicates that 60% of credit sales is collected in the month after the sale, 30% is collected two months after the sale, 5% is collected three months after the sale, and the remaining 5% is never collected Assume that the total cost of direct materials purchases in December was $520,000. The company pays 40% of its direct materials purchases in the month of purchase, and pays the remaining 60% in the month after purchase. Print Done Print Done sun Birdfeeders Plus makes backyard birdfeeders. The company sells the birdfeeders to home improvement 2.0 board feet of wood, which the company obtains at a cost of $3 per board foot. The company would lik next month's production requirements. Requirement 1. Prepare the sales budget for the first three months of the year, as well as a summary bud Birdfeeders Plus Sales Budget For the Quarter Ended March 31 January February March Quarter Unit salos Multiply by: Sales price per unit Total sales revenue Cash sales Credit sales Total sales revenue Requirement 2. Prepare the production budget for the first three months of the year, as well as a summary bu Birdfeeders Plus Production Budget For the Quarter Ended March 31 January February March Quarter Unit sales Plus: Desired ending Inventory Total needed Less: Beginning Inventory Units to produce Requirement 3. Prepare the direct materials purchases budget for the first three months of the year, as well as a Birdfeeders Plus Direct Materials Budget For the Quarter Ended March 31 Enter any number in the edit fields and then continue to the next question. Requirement 3. Prepare the direct materials purchases budget for the first three months of the year, as well as a summary budge Birdfeeders Plus Direct Materials Budget For the Quarter Ended March 31 January February March Quarter Units to be produced Multiply by: Quantity (board feet) of DM needed per unit Quantity (board foet) needed for production Plus: Desired ending Inventory of DM Total quantity (board feet) nooded Less: Beginning inventory of DM Quantity (board feet) to purchase Multiply by: Cost per board foot Total cost of DM purchases Requirement 4. Prepare the cash collections budget for January, February, and March, as well as a summary for the first quarter. Review the sales budget prepared in Requirement 1. Birdfeeders Plus Cash Collections Budget For the Quarter Ended March 31 January February March Quarter Cash sales in current month Collections on credit sales: 60% of credit sales made one month ago 30% of credit sales made two months ago 5% of credit salen made three months ago Total cash collections Requirement 5. Prepare the cash payments budget for direct materials purchases for the months of January, February, and March, as Review the direct materials budget prepared in Requirement 3 Birdfeeders Plus Cash Payments for Direct Materials Budget For the Quarter Ended March 31 January February March Quarter 40% of current month DM purchases 60% of last month's DM purchases Total cash payments