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a. Sunrise Poles manufactures hiking poles and is planning on producing 4,100 units in March and 3,700 units in April. Each pole requires a half pound of material, which costs $1.00 per pound. The companys policy is to have enough material on hand to equal 10% of the next months production needs and to maintain a finished goods inventory equal to 25% of the next months production needs. What is the budgeted cost of purchases for March?

Budgeted cost of purchases $

b. Cash collections for Wax On Candles found that 60% of sales were collected in the month of the sale, 30% was collected the month after the sale, and 10% was collected the second month after the sale.

Given the following sales, how much cash will be collected in January and February?

Nov.	Dec.	Jan.	Feb.
$26,000	$36,000	$20,000	$23,000

	Jan.	Feb.
Cash collected

c.

Nonna's Re-Appliance Store collects 55% of its accounts receivable in the month of sale and 40% in the month after the sale. Given the following sales, how much cash will be collected in February?

Dec. 2017	Jan. 2018	Feb. 2018
$21,000	$55,000	$69,000

Cash collected $

c.

Dream Big Pillow Co., pays 65% of its purchases in the month of purchase, 30% the month after the purchase, and 5% in the second month following the purchase. It made the following purchases at the end of 2017 and the beginning of 2018:

Nov. 2017	Dec. 2017	Jan. 2018	Feb. 2018	Mar. 2018
$59,000	$48,000	$34,000	$38,000	$44,000

Given the above purchases, how much cash will be paid in quarter 2018?

Cash paid $

d. Desiccate purchases direct materials each month. Its payment history shows that 70% is paid in the month of purchase with the remaining balance paid the month after purchase. Prepare a cash payment schedule for March if in January through March, it purchased $40,000, $40,000, and $39,000, respectively.

Cash paid in	March
Month of purchase
Month after purchase

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