TIME SENSITIVE

Soprano Co. is in the process of preparing the second quarter budget for 2010, and the following data have been assembled:

%u2022

The company sells a single product at a selling price of $45 per unit. The estimated sales volume for the next six months is as follows:

March	6,100 units	June	8,100 units
April	7,300 units	July	9,100 units
May	10,400 units	August	6,000 units

%u2022	All sales are on account. The company's collection experience has been that 44% of a month's sales are collected in the month of sale, 53% are collected in the month following the sale, and 3% are uncollectible. It is expected that the net realizable value of accounts receivable (i.e., accounts receivable less allowance for uncollectible accounts) will be $145,485 on March 31, 2010.
%u2022	Management's policy is to maintain ending finished goods inventory each month at a level equal to 54% of the next month's budgeted sales. The finished goods inventory on March 31, 2010, is expected to be 3,942 units.
%u2022	To make one unit of finished product, 4 pounds of materials are required. Management's policy is to have enough materials on hand at the end of each month to equal 44% of the next month's estimated usage. The raw materials inventory is expected to be 15,794 pounds on March 31, 2010.
%u2022	The cost per pound of raw material is $6.00, and 71% of all purchases are paid for in the month of purchase; the remainder is paid in the following month. The accounts payable balance for raw material purchases is expected to be $53,783 on March 31, 2010.

Required:

(a)	Prepare a sales budget in units and dollars, by month and in total, for the second quarter (April, May, and June) of 2010.(Omit the "$" sign in your response.)

	April	May	June	Total
Expected sales in units
Selling price per unit	$	$	$	$
Total sales	$	$	$	$

(b)	Prepare a schedule of cash collections from sales, by month and in total, for the second quarter of 2010. (Omit the "$" sign in your response.)

Cash collections from:	April	May	June	Total
March sales	$			$
April sales		$
May sales			$
June sales
Total cash collections	$	$	$	$