Shooter, Inc. began operations on September 1, 2020 The following balances are the ACTUAL TOTALS during 2020 (please be aware that 99.99% of the time projected balances are different from what turns out to be actual balances.) Sales – September, 23,000 units, October 21,000 units, November, 22,000 units, December 26,000 units Production – September 28,250 units, October 20,500 units, Nov 22,500 units, December 26,000 units Purchases of Raw Material – Sept 172,000 pounds; Oct 105,500 pounds; Nov 117,750 pounds; December 125,125 pounds Ending Inventory (December 31, 2020), Finished Goods – 6,000 units Ending Inventory (December 31, 2020), Raw Material – 34,125 pounds Accounts Receivable as of December 31, 2020 – $2,035,600 Allowance for Doubtful Accounts as of December 31, 2020 - $128,800 Accounts Payable for raw material purchases, December 31, 2020 – $225,225 Cash Balance on December 31, 2020 - $483,750 Now management for Shooter, Inc. is planning for 2021 and you have been tasked to prepare the master budget for the company for January through June 30h Each unit will sell for $140 January February March April May June July Aug Forecasted Sales (in units) 24,000 19,000 26,000 25,000 22,000 23,000 21,000 17,000 • Each unit requires 5 pounds of material • Each unit requires 3 hours of Direct Labor • Overhead is applied based on machine hours, each unit requires 2.5 hours of machine time • Each pound of material costs $6 • Each machine hour costs $10 of overhead of which $1 is depreciation • Each Direct Labor hour costs $20 • Your desired Finished Goods inventory is 25% of next month's sales • Your desired Raw Material ending inventory is 30% of next month's usage • Your cash collections are 65% during the month of sale, 18% the next month and 10% two months later, 6% three months later, you anticipate never collecting 1%, management policy is to show Bad Debt Expense in the month the sale occurred and to write off any uncollected account 1 year after the sale occurred. Until that time, the amount estimated to never to be collected will appear in Allowance for Doubtful Accounts (go back and look at your 211 stuff) Your cash payments of raw material are 70% the month of purchase and 30% the next month December January February March April May June Admin expenses – $460,000 $410,000 $370,000 $480,000 $470,000 $390,000 $400,000 • $25,000 of administrative expenses are depreciation, 80% of the remaining administrative expenses are paid in the month incurred, 20% the following month.