You will be using the budgeting assumptions provided for Milo-Freeze Company. Milo-Freeze Company manufactures and sells a product that has seasonal variations in demand with peak sales coming in the third quarter. The following information concerns operations for Year 2 (the coming year) and for the first two quarters of Year 3. You are asked to prepare a Master Budget report to assist in their decision making. You will prepare the following budgets.
a. Sales budget
b. Cash collections budget
c. Production budget
d. Direct materials budget
e. Schedule of expected cash payments for purchases of materials
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