Mountain View, Inc. makes one product and it provided the following information to help prepare the master budget:

A. The budgeted selling price per unit is $60. Budgeted unit sales for April, May, June, and July are 9,500, 10,000, 10,500, and 11,000 units respectively. All sales are on credit.

B. 50% of credit sales are collected in the month of the sale and 50% in the following month.

C. The ending finished goods inventory equals 20% of the following month's unit sales.

D. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 4 pounds of raw materials. The raw materials cost $2.50 per pound.

E. 60% of raw materials purchases are paid for in the month of purchase and 40% in the following month.

F. The direct labor wage rate is $12.50 per hour. Each unit of finished goods requires 2 direct labor-hours.

G. The variable selling and administrative expense per unit sold is $2.00. The fixed selling and administrative expense per month is $75,000.

Required:

Figure your solutions below and record your final answer in the space provided.

_________________________1. What are the budgeted sales for May?

_________________________2. What are the expected cash collections for May?

_________________________3. What is the accounts receivable balance at the end of May?

_________________________4. According to the production budget, how many units should be produced in May?

_________________________5. If 42,400 pounds of raw materials are needed to meet production in June, how many pounds of raw materials should be purchased in May?

_________________________6. What is the estimated cost of raw materials for May?

_________________________7. In May, what are the total estimated cash disbursements for raw materials purchased? Assume the cost of raw material purchases in the previous month is $96,000.