Ponderosa, Inc., produces wiring harness assemblies used in the production of semi$-$trailer trucks. The wiring harness assemblies are sold to various truck manufacturers around the world. Projected sales in units for the coming five months are given below.

January $10,000$

February $10,500$

March $13,000$

April $16,000$

May $18,500$

The following data pertain to production policies and manufacturing specifications followed by Ponderosa:

Finished goods inventory on January $1$ is $900$ units. The desired ending inventory for each month is $20$ percent of the next month's sales.

The data on materials used are as follows:

Direct Material Per$-$Unit Usage Unit Cost

Part #K$2982$ $$4$

Part #C$3037$

Inventory policy dictates that sufficient materials be on hand at the beginning of the month to satisfy $30$ percent of the next month's production needs. This is exactly the amount of material on hand on January $1.$

The direct labor used per unit of output is one and one$-$half hours. The average direct labor cost per hour is $$20.$

Overhead each month is estimated using a flexible budget formula. $($Activity is measured in direct labor hours.$)$

Fixed Cost

Component Variable Cost

Component

Supplies $ $$ $$1\mathrm{.}00$

Power $0\mathrm{.}20$

Maintenance $12,5001\mathrm{.}10$

Supervision $14,000$

Depreciation $45,000$

Taxes $4,300$

Other $86,0001\mathrm{.}60$

Monthly selling and administrative expenses are also estimated using a flexible budgeting formula. $($Activity is measured in units sold.$)$

Fixed Costs Variable Costs

Salaries $ $88,500$

Commissions $$ $$1\mathrm{.}40$

Depreciation $25,000$

Shipping $3\mathrm{.}60$

Other $137,0001\mathrm{.}60$

The unit selling price of the wiring harness assembly is $$110.$

In February, the company plans to purchase land for future expansion. The land costs $$68,000.$

All sales and purchases are for cash. The cash balance on January $1$ equals $$62,900.$ The firm wants to have an ending cash balance of at least $$25,000.$ If a cash shortage develops, sufficient cash is borrowed to cover the shortage and provide the desired ending balance. Any cash borrowed must be borrowed in $$1,000$ increments and is repaid the following month, as is the interest due. The interest rate is $12$ percent per annum.Cash budget

Enter a negative balance as a negative amount, and if an amount is zero enter $"0".$