preparing the second quarter budget

Soprano Co. is in the process of preparing the second quarter budget for 2013, and the following data have been assembled: • The company sells a single product at a selling price of 541 per unit. The estimated sales volume for the next six months is as follows: Wrn 6000 was MM 1200 tab Aprf 7,300 we MY *JO mils May 10.100 mi.^ Pupae 6300 Leib ' All sales are on account. The company's collection experience has been that 41% of a month's sales are collected in the month of sale. 51% are collected in the month following the sale, and 8% are uncollectible. It is expected that the net realizable value of accounts receivable (i.e.. accounts receivable less allowance for uncollectible accounts) will be 5125,460 on March 31, 2013. ' Management's policy is to maintain ending finished goods inventory each month at a level equal to 53% of the next month's budgeted sales. The finished goods inventory on March 31. 2013, is expected to be 3.869 units. • To make one unit of finished product. 4 pounds of materials are required. Management's policy is to have enough materials on hand at the end of each month to equal 41% of the next month's estimated usage. The raw materials inventory is expected to be 14.406 pounds on March 31. 2013. ' The cost per pound of raw material is 56.00, and 78% of all purchases are paid for in the month of purchase: the remainder is paid in the following month. The accounts payable balance for raw material purchases is expected to be 539.853 on March 31, 2013. Required: • Prepare a sales budget in units and dollars, by month and in total, for the second quarter (April. May, and June) of 2013.