The following information is available for Raleigh Company:

Additional information:

a. Seventy percent of a month's sales is collected by month-end; the remaining 30 percent is collected in the following month.

b. The desired finished goods inventory every month is 20 percent of the next month's sales

c. The desired direct materials inventory every month is 10 percent of the next month's production needs 1. Prepare sales budgets for April, May, and June (in dollars)
2. Prepare cash collection budgets for April, May, and June (in dollars). Assume that all sales are on credit.
3. Prepare production budgets for April, May, and June (in units).
4. Prepare direct materials usage and purchases budgets for April, May, and June (in dollars).
5. Prepare direct labor budgets for April, May, and June (in dollars).

Transcribed Image Text:

Expected sales volume: April May. June Selling price per unit.. Accounts receivable balance, April 1....... Desired finished goods inventory, June 30 Beginning finished goods inventory, April 1 Direct materials needed per unit..... Desired direct materials inventory, June 30. Beginning direct materials inventory, April 1. Total direct labor time per finished product. Direct materials cost per pound... Direct labor cost per hour 1,600 units 1,500 units 1,750 units: $12 $6,000 200 units 210 units 5 pounds 550 pounds 420 pounds 2 hours $0.50 $8