2. Prepare a direct materials purchases budget showing the quantity of XL 12 components to be purchased for April, May and June and for the quarter in total.

Symphony Electronics produces wireless speakers for outdoor use on patios, decks, etc. Their most popular model is the All Weather and requires four separate XL12 components per unit. The company is now planning raw material needs for the second quarter. Sales of the All Weather are the highest in the second quarter of each year as customers prepare for the summer season. The company has the following inventory requirements: a. The finished goods inventory on hand at the end of each month must be equal to 15,900 units plus 10% of the next month's sales. The finished goods inventory on March 31 is budgeted to be 27,900 units. b. The raw materials inventory on hand at the end of each month must be equal to 20% of the following month's production needs for raw materials. The raw materials inventory on March 31 for XL 12 is budgeted to be 98,800 components. c. The company maintains no work in process inventories. A sales budget for the All Weather speaker is as follows: April May June July August Budgeted Sales in Units 125,000 143,000 202,000 107,600 61,000 Required: 1. Prepare a production budget for the All Weather for April, May, June and July Answer is complete and correct. Budgeted sales (units) Add: Desired ending inventory Total needs Less: Beginning inventory Required production April 125.000 30,200 155,200 27,900 127.300 May 143.000 36,100 179 100 30,200 148.900 June 202.000 26,600 228,600 36,100 192,500 July 107.000 22,000 129,000 26,600 102,400 2. Prepare a direct materials purchases budget showing the quantity of XL 12 components to be purchased for April, May and June and for the quarter in total. * Answer is not complete. Second Quarter 468,700 4 Required production (units) XL 12 components needed per unit Production needs Add: Desired ending inventory Total XL 12 needs Less: Beginning inventory Material XL 12 purchases 1,874.800 April 127,300 4 509,200 119,120 628,320 98,880 X 529,440 May June 148,900 192,500 4 4 595,600 770,000 154.000 749,600 770,000 1,874,800 749,600 770,000 1,874.800