fall creations inc. is preparing budgets for the second quarter ending june 30, 2021. SALES BUDGET. budgeted sales of the companys only product for the next five months are april: 26,000 may: 39,400 june: 37,000 july: 32,000 august: 20,500 the selling price is $11.15. EXPECTED CASH COLLECTIONS- all sales are on account. the company collects 60% of these credit sales in the month of sales; 36% are collected in the month following sale; and the remaining 4% are uncollectible. the accounts recievable balance on march 31 was $52,100. all balance was collectible.

: . Fall Creations Inc. is preparing budgets for the second quarter ending June 30, 2021. SALES BUDGET Budgeted sales of the company's only product for the next five months are April 26,000 units May 39,400 units June 37,000 units July 32,000 units August... 20,500 units The selling price is $11.15 per unit. SCHEDULE OF EXPECTED CASH COLLECTIONS Additional data: All sales are on account The company collects 60% of these credit sales in the month of the sale; 36% are collected in the month following sale; and the remaining 4% are uncollectible. The accounts receivable balance on March 31 was $52,100. All of this balance was collectible. PRODUCTION BUDGET Additional data: The company desires to have inventory on hand at the end of each month equal to 16% of the following month's budgeted unit sales. On March 31,4,100 units were on hand. DIRECT MATERIALS BUDGET Additional data: 6 pounds of material are required per unit of product. Management desires to have materials on hand at the end of each month equal to 10% of the following month's production needs. The beginning materials inventory was 16,500 pounds. . The material costs $0.42 per pound. SCHEDULE OF EXPECTED CASH DISBURSEMENTS FOR MATERIAL Additional data: Sixty percent of a month's purchases are paid for in the month of purchase; 40% is paid for in the following month. No discounts are given for carly payment