Cash

Accounts receivable

$$6,550$

$495,200$

$$368,200$

$158,300$

Novak State sells electronic products. The controller is responsible for preparing the master budget and has accumulated the

information below for the months of January, February, and March.

Balances at January $1$ are expected to be as follows:

Inventories

Accounts payable

The budget is to be based on the following assumptions:

Each month's sales are billed on the last day of the month.

Customers are allowed a $3\%$ discount if their payment is made within $10$ days after the billing date. Receivables are booked at

gross.

The company collects $60\%$ of the billings within the discount period, $25\%$ by the end of the month after the date of sale, and

$9\%$ by the end of the second month after the date of sale; $6\%$ prove uncollectible.

It pays $54\%$ of all materials purchases and the selling, general, and administrative expenses in the month purchased and the

remainder in the following month. Each month's units of ending inventory are equal to $130\%$ of the next month's units of

sales.

The cost of each unit of inventory is $$20.$

Selling, general, and administrative expenses, of which $$2,400$ is for depreciation, are equal to $15\%$ of the current month's

sales

Actual and projected sales are as follows:

$1$

$2.$

$3$

$4.$

$5.$

$6$

$7.$

Month

November

December

January

February

March

April

Sales

$$420,000$

$432,000$

$426,000$

$408,000$

$429,000$

$435,000$

Units

$14,000$

$14,400$

$14,200$

$13,600$

$14,300$

$14,500$

Calculate the budgeted number of units of inventory to be purchased during the month of March.

Units to be purchased