Tecknik Corporation has the following budgeted sales for the selected six-month period:January unit sales is 15,000 , February 20,000, March 35,000, April 25,000, May 30,000, and June 20,000

There were 7,500 units of finished goods in inventory at the beginning of January. Plans are to have an inventory of finished product equal to 20 percent of the unit sales for the next month.

Three pounds of materials are required for each unit produced. Each pound of material costs $20. Inventory levels for materials equal 30 percent of the needs for the next month. Materials inventory on January 1 was 5,000 pounds.

The sales price per unit is $100. 10% of the customers usually pay at the time of sale. 35% of the customers pay within the first month of the sale, and the rest of the customers pay within the second month following the sale.

5% of the purchases are paid at the time of sale. 80% of the purchases are paid within the first month of purchase, and the rest paid the second month following the purchase.

Required:

a.Prepare production budgets in units for February, March, and April.

b.Prepare a purchases budget in pounds and dollars for February, March, and April.

c.Prepare a Cash Collections Budget February, March, and April.

d.Prepare a Cash Disbursements Budget February, March, and April.