Use the following information to help prepare the master budget for the next four months of operations:

a$.$ The budgeted selling price per unit is $$110.$ Budgeted unit sales for January, February, March, and April are $7,500,10,600,12,000,$ and $11,700$ units, respectively. All sales are on credit.

b$.$ Regarding credit sales, $30\%$ are collected in the month of the sale and $70\%$ in the following month.

c$.$ The ending finished goods inventory equals $30\%$ of the following month's sales.

d$.$ The ending raw materials inventory equals $10\%$ of the following month's raw materials production needs. Each unit of finished goods requires $5$ pounds of raw materials. The raw

materiats cost $$4\mathrm{.}00$ per pound.

e$.$ Regarding raw materials purchases, $40\%$ are paid for in the month of purchase and $60\%$ in the following month.

f$.$ The direct labor wage rate is $$23\mathrm{.}00$ per hour. Each unit of finished goods requires $2\mathrm{.}6$ direct labor$-$hours.

g$.$ Manufacturing overhead is entirely variable and is $$8\mathrm{.}00$ per direct labor$-$hour.

h$.$ The variable selling and administrative expense per unit sold is $$1\mathrm{.}70.$ The fixed selling and administrative expense per month is $$70,000.$

Budgeted Sales $($Feb$)=1,166,000$

Cash collection $($Feb$)=927,300$

$\frac{A}{R}$ at the end of $(7eb)=816000$

Budgeted Production for $($Feb$)=\frac{10,600}{+\frac{3,600}{14,200-3,180}}=11,020$

R$.$M Ind Inv. $($Feb$)$ Assume March Producetion need $59,550$ ponls $5,955*4=23,820$

$\frac{A}{p}($end of $7eb$

$$ Assime R$.$M$.$ Purchased in Feb $55,545$ ponds.

Est. Direct Labor Cost Feb