to maintain an ending stock of finished birdhouses equal to $15\%$ of the next month's sales. Sales data for the company are as follows:

View the sales data.

View additional data.

Read the requirements.

versus credit.$)$

Backyard Warehouse

Sales Budget

For the Quarter Ended March $31$Sales data

PrintAdditional data

In any given month, $30\%$ of the total sales are cash sales, while the

remainder are credit 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, $4\%$ is collected three months after the sale, and the

remaining $6\%$ is never collected.

Assume that the total cost of direct materials purchases in December

was $$590,000.$ The company pays $55\%$ of its direct materials

purchases in the month of purchase, and pays the remaining $45\%$ in

the month after purchase.Requirement $2.$ Prepare the production budget for the first three months of the year, as well as a summary budget for the quarter.

Backyard Warehouse

Production Budget

Unit sales

Plus: Desired ending invent

Total needed

Less: Beginning inventory

Units to produce wood for production in April. $($Round your answers to the nearest whole dollar. Abbreviation used: DM $=$ Direct Materials.$)$wood for production in April. $($Round your answers to the nearest whole dollar. Abbreviation used: DM $=$ Direct Materials.$)$

Backyard Warehouse

Direct Materials Budget

For the Quarter Ended March $31$

Units to be produced

Multiply by: Quantity $($board feet$)$ of DM needed per unit

Quantity $($board feet$)$ needed for production

Plus: Desired ending inventory of DM

Total quantity $($board feet$)$ needed

Less: Beginning inventory of DM

Quantity $($board feet$)$ to purchase

Multiply by: Cost per board foot

Total cost of DM purchasesReview the sales budget prepared in Requirement $1.$

Backyard Warehouse

Cash Collections Budget

For the Quarter Ended March $31$

Cash sales in current month

Collections on credit sales:

$80\%$ of credit sales made one month ago

$10\%$ of credit sales made two months ago

$4\%$ of credit sales made three months ago

Total cash collections

DM $=$ Direct Materials.$)$

Review the direct materials budget prepared in Requirement $3.$Requirement $5.$ 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. $($Abbreviation used:

DM $=$ Direct Materials.$)$

Review the direct materials budget prepared in Requirement $3.$

Backyard Warehouse

Cash Payments for Direct Materials Budget

For the Quarter Ended March $31$

$55\%$ of current month DM purchases

$45\%$ of last month's DM purchases

Total cash payments