The Master Budge P9-59A Comprehensive summary problem (Learning Objectives 2&3) Birdfeeders Unlimited makes backyard birdfeeders. The company sells the birdfeeders to home improvement stores for $15 per birdfeeder. Each birdfeeder requires 1.5 board feet of wood, which the company obtains at a cost of $4 per board foot. The company would like to maintain an ending stock of wood equal to 10% of the next month's production requirements. The company would also like to maintain an ending stock of finished bird- feeders equal to 20% of the next month's sales. Sales data for the company is as follows Units 92,000 85,000 78,000 80,000 90,000 95,000 105,000 October actual sales (prior year) November actual sales (prior year) December actual sales (prior year) January projected sales February projected March projected sales April projected sales In any given month, 20% of the total sales are cash sales, while the remainder are credit The company's collection history indicates that 80% of credit sales is collected in the month after the sale, 10% is collected two months after the sale, 6% is collected three months after the sale, and the remaining 4% is never collected. Assume that the total cost of direct materials purchases in December was $550,000. The company pays 45% of its direct materials purchases in the month of purchase and pays the remaining 55% in the m onth after purchase. Requirements Prepare the following budgets for the first three months of the year, as well as a summary budget for the quarter: 1. Prepare the sales budget, including a separate section that details the type of sales made (cash versus credit). 2. Prepare the production budget. 3. Prepare the direct materials purchases budget. Assume the company needs 120,000 board feet of wood for production in April. Prepare the cash collections budget for January, February, and March, as well as a summary for the first quarter. Prepare the cash payments budget for direct materials purchases for the months of January, February, and March, as well as a summary for the first quarter. 4. 5. P9-60A Budgeted income statement (Learning Objective 2) The budget committee of Hilton Fashions, an upscale women's clothing retailer, has as- sembled the following data. As the business manager, you must prepare the budgeted income statements for May and June. a. Sales in April were $50,000. You forecast that monthly sales will increase 8% in May