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Business · Accounting
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High End Crockery Corp makes pottery bowls. The following information is available:

Budgeted Selling Price $200 each
Budgeted Unit Sales
   December 4,000
   January 3,500
   February 2,500
   March 2,000
   April 1,800
Desired ending finished goods inventory 15% of next month's sales
Pounds of clay needed per bowl 4
Price per pound of clay $2.50
Desired ending inventory direct materials 30% of next month's production needs
December purchases for direct materials $37,525
Direct labor hours per bowl 6
Direct labor cost per hour $22.50
Variable manufacturing overhead rate $3.20 per direct labor hour
Fixed manufacturing overhead $2,300 per month (paid in cash monthly)
Variable operating expenses per unit sold $16 (paid in cash monthly)
Fixed operating expenses
   Salaries $2,800 per month (paid in cash monthly)
   Studio Rent $4,500 per month (paid in cash monthly)
   Depreciation $1,600 per month
Interest expense $3.000 per month (paid in cash monthly)
Income Tax Expense $5,500 per month (paid in cash monthly)
Company sales
   Cash Sales 35%
   Credit Sales 65%
Credit sales collections
   Month of sale 40%
   Month after sale 55%
   Never collected 5%
Cash payments for materials
   In month of purchase 60%
   In month after purchase 40%
Beginning cash balance $65,000
Minimum required cash balance

$200,000

How many units should be produced in January?

How many units should be produced in February?

How many units should be produced in March?

How many units should be produced for the quarter?

How many pounds of clay are required for production in January?

How many pounds of clay are required for production in February?

How many pounds of clay are required for production in March?

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