The following information is available for Raleigh Company:

Expected sales volume:

Additional information:
a. Each month 70% of sales are collected by month-end; the remaining 30% are collected in the following month.
b. The desired finished goods inventory every month is 20% of the next month's sales.
c. The desired direct materials inventory every month is 10% of the next month's production needs.
d. Each month 80% of direct materials purchases are paid by month-end; the remaining
20% are paid in the following month.
Required:
1. Prepare sales budgets for April, May, and June (in dollars).
2. Prepare cash collection budgets for April, May, and June (in dollars). Assume that all sales are on credit.
3. Prepare production budgets for April, May, and June (in units).
4. Prepare direct materials budgets for April, May, and June (in dollars).
5. Prepare direct labor budgets for April, May, and June (indollars).

Transcribed Image Text:

Expected sales volume: Aprl. May June 1,600 units 1,500 units 1,750 units Beginning finished goods inventory, April 1 Direct materials needed per unit Desired direct materials 210 units 5 pounds inventory, June 30 550 pounds Beginning direct materials inventory, April 1. Total direct labor time per finished product. Direct materials cost Selling price per unit. Accounts receivable $12 420 pounds balance, April 1 Accounts payable balance, April 1 Desired finished goods inventory, June 30 $6,000 2 hours $796 per pound Direct labor cost per hour. $0.50 S8 200 units