Schedules of Production and Direct Materials Purchases and Payments. Atkins Manufacturing Company anticipates unit sales next year as follows: first quarter, 20,000; second quarter, 25,000, third quarter, 40,000; and fourth quarter, 30,000. Sales for the first quarter of the following year are expected to be 35,000 units. Each unit produced requires one-half pound of direct materials at a cost of $4 per pound. Management wants finished goods inventory to equal 30 percent of unit sales for the next quarter and direct materials ending inventory to equal 20 percent of that needed for production in the next quarter. Desired ending inventory of direct materials at the end of the fourth quarter is estimated to he 3,000 pounds. Accounts payable are paid in the quarter following the quarter of purchase. Accounts payable on December 31 total $65,000. Inventory on December 31 totals 6,000 finished units and 2,150 pounds of direct materials.

Prepare the following schedules for each quarter and for the year

a. Production budget.

b. Direct materials budget.

c. Payment for purchases.