Create a production forecast, direct materials forecast, and a schedule of cash payments.

Chapter 2 Homework -- Forecasting Centerfield Turf Tools manufactures and sells a tool (the Turf Monster) used to install and maintain real grass turfs used in sports stadiums around the world. Centerfield is preparing forecasts for the first quarter of next year ending on March 31, 2xxx. Centerfield uses the following information to create their forecast. Selling price per unit $850 IForecasted Sales in Units January 1,500 February 1,250 March 2,650 April 2,450 May 2,500 Sales and Revenue Information All sales are on account. Centerfield's collection pattern is as follows: 40% collected in the month of sale 45% collected in the month following sale 10% collected in the second month following sale 5% uncollectible The following accounts receiveable balance on January 1st, 2xxx will be collected in full in January. $385,000 Centerfield's standard practice is to maintain a finished goods ending inventory balance each month equal to 25% of the following month's forecasted unit sales. They had 375 units on hand on January 1, 2xxx. Production and Direct Materials Information Centerfield has the following standard quantities and costs of direct materials to produce one Turf Monster: 20 pounds of direct materials $6 per pound Management desires ending inventory at the end of each month equal to 15% of the following month's production needs. The cost of direct materials purchased in a month is paid according to the following terms: 30% in the month of purchase 50% in the month following purchase 20% in the second month following purchase The January 1st accounts payable balance is $31,500 and will be paid according to the terms above