The Master Budget Comprehensive summary problem Birdfeeders Unlimited makes backyard birdfeeders. The company sells the birdfeeders to home improvement stores. $15 Sales price per birdfeeder 1.5 Board feet of wood required for each birdfeeder $4 Cost per board foot (actual) 10% Desired ending wood inventory stated as a percentage of next month's production requirements 20% Desired ending finished goods inventory (finished birdfeeders) stated as a percentage of next mo $550,000 Total cost of direct materials purchases in December 45% of direct materials purchases are paid in the month of purchase 55% of direct materials purchases are paid in the month after purchase Sales data for the company can be found on the "SALESDATA" tab. Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong. Requirements 1 Prepare the sales budget, including a separate section that details the type of sales made (cash versus credit) for the first three months of the year, as well as a summary budget for the quarter. 2 Prepare the production budget for the first three months of the year, as well as a summary budget for the quarter. 3 a. Enter all amounts as positive values. Do NOT use parentheses or a minus sign for amounts to be subtracted. Prepare the direct materials purchases budget for the first three months of the year, as well as a summary budget for the quarter. Assume the company needs 120,000 board feet of wood for production in April. a. b. Enter all amounts as positive values. Do NOT use parentheses or a minus sign for amounts to be subtracted. Abbreviation used: DM = Direct materials 4 Prepare the cash collections budget for January, February, and March, as well as a summary for the first quarter. 5 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. **DATA SHEET -- DO NOT ENTER ANSWERS HERE** Units October actual sales (prior year) 92,000 November actual sales (prior year) 85,000 December actual sales (prior year) 78,000 January projected sales 80,000 February projected sales 90,000 March projected sales 95,000 April projected sales 105,000 20% of the total sales are cash sales 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 4% is never collected 80% of the total sales are credit sales