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Budgeting date Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 Quarter 2 Budgeted unit sales 80,000 30,000 60,000 70,000 90,000 80,000 Selling price

Budgeting

date Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 Quarter 2
Budgeted unit sales 80,000 30,000 60,000 70,000 90,000 80,000
Selling price per unit $12
Accounts receivable, beginning balance $40,000
Sales collected in the quarter sales are made 80%
Sales collected in the quarter after sales are made 15%
Desired ending finished goods inventory is 20% of the budgeted unit sales of the next quarter
Finished goods inventory, beginning 15,000 units
Raw materials required to produce one unit 3 pounds
Desired ending inventory of raw materials is 20% of the next quarter's production needs
Raw materials inventory, beginning 30,000 pounds
Raw material costs $1.50 per pound
Raw materials purchases are paid 65% in the quarter the purchases are made
and 35% in the quarter following purchase
Accounts payable for raw materials, beginning balance $90,000

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