P-55A Comprehensive budgeting problem (Learning Objectives 2 & 3) Dudley Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Dudley Manufacturings operations: Current Assets as of December 31 (prior year): Cash Accounts receivable, net $ 4,500 S 50,000 15,000 Inventory.. Property, plant, and equipment, net... Accounts payable.... Capital stock... Retained earnings.. 5122,500 $126,000 22,920 a. Actual sales in December were $70,000. Selling prica per uni? is projected to remain stable at $10 per unit throughout the budget per stable at 510 per unit throughout the budget per the upcoming year are budgeted to be as follows iod. Sales for the first five months of January. February... March 583,000 592,000 $94,000 597,000 589,000 arch May. . b. Sales are 30%cash and 70%credit. All credt sales are collected in the north e. Dudley Manufacturing has a policy that states that each month's ending inventory of d. Of each month's rect following the sale. finished goods should be 25% of the following month's sales (in units). 10% are paid for in the month of purchase. while the remainder is paid for in the mantn tallowing purchase. Two pounds of direct material is nesded per unit at 52per oound. Ending invent ory of direct materials next mon facility is indirect, but there is some direct e. Most of the labor at the nm labor incurred. The dir s10 per hour. Al direct labor is paid for in the month in which the work is pertormed The direct labor total cost for each of the upcoming three months is as follows: January $1,705 Fobruary S1,850 March 51,895 uring overhead costs are $5,000 for factory rent, $3,000 for other Monthly manufacturing overhead costs an fixed manufacturing expenses, and $1.20 per u ead. No depre in which they are incurred Computer equipment for the admin quarter. In January, Dudley Manufa while February s cas be S1 6,800. f. fxedmdepreiaton is ncuded ih these fgures, Allexpenses are paid in the month 1.20 per unit for variable manufacturing over equioment for the administrative offices will be purchased in the g. anufacturing ase equipment for $6,200 (cash), h expenditure will be $12,000 and March's cash expenditure will be