ACG 2071 Chapter 9-Budgeting Review Problem Music Factory is preparing a master budget for 2019. Relevant data pertaining to itsales and production budgets are as follows: for the year are expected to total 1,200.000 units. Quarterly sales, as a percentage of total sales vected to be 20%, 25, 30, and 25%, respectively. The sales price is expected to be sso per unit for the first three quarters and $55 per unit for the fourth quarter. Sales in the first quarter of 2020 are expected to be 10% higher than the budgeted volume for the first quarter of 2019. Of all sales, 10% are cash sales and the remaining 90% each quarter are credit sales. Of the credit sales. SON of the credit sales are collected in the same quarter as the sale, with 40% collected the following quarter, and 10 is deemed to be uncollectible. The Accounts Receivable Balance at 1/1/19 was $200,000 before uncollectible accounts were written off. Management desires to maintain an ending finished goods inventory each quarter at 25% of the next quarter's budgeted sales volume. Each unit is purchased from the vendor at $10 per unit, and all are purchased on credit. of the inventory purchased each quarter, 60% of the credit purchase is paid for within the same quarter, and 40% is paid by the following quarter. The balance in accounts payable as of 1/1/19 was $75.000 1. Prepare a sales and cash collections budget for 2019. 2. Prepare a purchases and cash disbursements budget for 2019