The following beginning and ending inventory levels (in units) are planned for next year. Six kilograms of direct material are required to produce each unit of finished product.

1 January 31 December

Direct material 120000 185000

Work in process 70000 60000

Finished goods 280000 250000

Required:

1.If Daniel plans to sell 720,000 units during the year, calculate the number of units the firm would have to manufacture.

2.If 880,000 finished units are to be manufactured by Dante during the year, determine the amount of direct material that needs to be purchased.

3.All sales are on credit. Expected sales revenue for the first 3 months of the coming year is as follows:

31 Jan 28 Feb 31 Mar

$150,000 $180,000 $185,000

60 per cent of customer accounts are collected in the month of the sale, 35 per cent in the following month, and 5 per cent are considered uncollected. Management has estimated that of the amount expected to be outstanding from customers at the end of the current year (31 December), only 20 per cent will be collected in January with the remainder being uncollected. At the end of the current year, the balance of accounts receivable is expected to be $55,000.

Please prepare the schedule of budgeted cash receipts for the three-month period from January to March (with the formula how you calculate it)