budgeted to be $15,120. Each unit requires two kilograms of raw material that costs $7 per kilogram. Management desires to end each quarter with an inventory of raw materials equal to 20% of the following quarter's production needs. The desired ending Inventory for the fourth quarter is 3,170 kilograms. Management plans to pay for 60% of raw material purchases in the quarter acquired and 40% in the following quarter. Required: 1. Prepare the company's production budget for the upcoming fiscal year. GAEBER INDUSTRIES Production Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Budgeted sales (units) 8,100 6,900 6,100 6.900 28,000 Add Desired ending inventory 1,380 1,220 1,380 1,730 1,730 Total units needed 9,480 8,120 7,480 8,630 29,730 Deduct Beginning inventory 1,620 1,380 1,220 Required production 7,860 6,740 6,260 7,250 28,110 2-a. Prepare the company's direct materials budget. Production needs (kilograms) Add: Desired ending inventory Total needs (kilograms) Deduct: Beginning inventory Raw materials to be purchased (kilograms) Cost of raw materials to be purchased GAEBER INDUSTRIES Direct Materials Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 15,720 13.480 12,520 14,580 2,696 2,504 18,416 15,984 2,696 13,288 Year 56,100 2-b. Prepare the schedule of expected cash disbursements for materials for the upcoming fiscal year. (Round your answer to the nearest whole dollar amount.) GAEBER INDUSTRIES Schedule of Expected Cash Disbursements for Materials Accounts payable, beginning balance 1st Quarter purchase 2nd Quarter purchase 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year 3rd Quarter purchase 4th Quarter purchase Total cash disbursements for materials $ 0 $ 0 $ 0 $ 0 $ 0