The following information pertains to Bartholomew Corporation

Month Sales (units) Sales (dollars)

July 1,500 $30,000

August 1,700 34,000

September 1,600 32,000

October 1,700 40,800

November 2,100 54,600

December 2,350 51,700

January 2,300 55,200

February 1,900 51,300

March 1,750 43,750

April 1,600 41,600

May 1,500 30,000

June 1,400 32,200

Of sales, 25% are in cash with the remainder on account.

Accounts Receivable is collected from customers in the following manner:

Month of sale 40%

Month following sale 50%

Second month following sale 10%

Bartholomew Corporation desires ending inventory for finished goods to be 40% of next months sales.

Each unit requires four pounds of material, each pound costs $3.25. Bartholomew Corporation desires ending inventory of raw materials should be 60% of next months needs. Materials are purchased on account. Payments are 30% in the month of purchase with the remainder paid in the following month. The previous months ending Accounts Payable balance was $15,925.

In addition, each unit requires two hours of labor, each labor hour costs $18. Labor costs are paid for in the month incurred.

REQUIRED:

1. Prepare a Revenue budget for March, including revenue, cash collections, and the end of month accounts receivable balance.
2. Prepare a Production Budget for March.
3. Prepare a Raw Materials Purchases Budget for March, including.cash disbursements and the end of month accounts payable balance.
4. Prepare the Direct Labor Budget for March showing the payments for the month.