$1.$ A sales budget and the supplemental schedule of expected cash collections.

$2.$ A production budget.

$3.$ A direct materials budget and the supplemental schedule of expected cash payments for purchases of materials.

UMPI Corporation manufactures and sells mini robots, a seascnal product that has peak sales in the $3^{rd}$

quarter. The following information is related to the operations for Year $2($the upcoming year$)$ and for the

first two quarters of Year $3.$

A$.$ UMPI's only product, the mini robot, sells for $$83$ per mini robot. Budgeted mini robot sales for

the next six quarters are as follows. Note that ALI sales are made on credit.

B$.$ The sales, all made on credit, are collected as follows: $80\%$ in the quarter sales are made with

the remaining $20\%$ in the quarter directly following the sale. On January $1$ or Year $2,$ the

company's had $$70,000$ in accounts receivable, all of which will be collected in the first quarter

of the year. They have perfect customers who all pay their bills, so there are no bad debts to

recognize.

C$.$ The company requires ending finished goods inventory at the end of each quarter to equal $25\%$

of the budgeled mini$-$rubul sales for the nexl quarter. On Decernter $31,$ Year $1,$ UMPI had $6,500$

units on hand.

D$.$ Four pounds of raw materials are required for each mini robot. UMPI requires ending raw

materials inventory at the end of each quarter equal to $8\%$ of the following quarter's production

needs. On December $31,$ Year $1,$ UMPI had $22,000$ pounds of raw materials on hand.

t$.$ Ihe raw material costs $$8\mathrm{.}80$ per pound. Kaw material purchases are paid for in the following

pattern: $65\%$ is paid in the quarter the purchases are made and the remaining $35\%$ is paid in the

following quarter. On January $1,$ Year $2,$ UMPI's balance sheet showed $$825,000$ in accounts

payable for raw material purchases. All this amount will be paid for in the first quarter of Year $2.$

REQUIRED:

Prepare the following operating budgets and supplemental schedules for the year while showing both

quarterly $(1$ through $4)$ and total amounts in the columns.

A sales budget and the supplemental schedule of expected cash collections.

A production budget.

A direct materials budget and the supplemental schedule of expected cash payments for

purchases of materials.