A company makes one product and has provided the following information to help prepare the master budget.
- The budgeted selling price per unit is $60. Budgeted unit sales for January, February, March and April are 9,200, 23,000, 25,000, and 26,000 units, respectively. All sales are on credit.
- Thirty percent of credit sales are collected in the month of the sale and 70% in the following month.
- The ending finished goods inventory equals 20% of the following month’s unit sales.
Required:
1. Calculate February's budgeted sales.
2. Calculate February's expected cash collections.
3. According to the production budget, calculate the number of units that should be produced in February.