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Beach Wind Company manufactures kites that sell for $$20$ each. Each kite requires $2$ yards of lightweight canvas, which costs $$0\mathrm{.}60$ per yard. Each kite takes approximately $30$ minutes to build, and the labor rate averages $$8$ per hour. Beach Wind has the following inventory policies:

Ending finished goods inventory should be $30$ percent of next month$$s sales.

Ending direct materials inventory should be $20$ percent of next month$$s production.

Expected kite sales for the upcoming months are:

March $850$

April $700$

May $650$

June $720$

July $830$

August $760$

Variable manufacturing overhead is incurred at a rate of $$0\mathrm{.}40$ per unit produced. Annual fixed manufacturing overhead is estimated to be $$9,000($$$750$ per month$)$ for expected production of $9,000$ units for the year. Selling and administrative expenses are estimated at $$820$ per month plus $$0\mathrm{.}75$ per unit sold.

Beach Wind Company had $$12,200$ cash on hand on April $1.$ Of its sales, $60$ percent is cash. Of the credit sales, $50$ percent is collected during the month of the sale, and $50$ percent is collected during the month following the sale.

Of direct materials purchases, $60$ percent is paid for during the month purchased, and $40$ percent is paid in the following month. Direct materials purchases for March totaled $$800.$ All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $$280$ in depreciation. Beach Wind plans to spend $$15,000$ on equipment during April.