Business started off great the first year that the Golden Wolves Statues started production. Corey realized, however, that the business was seasonal and had peak sales in the fall, during the third quarter, when the students started college and continued through the beginning of the football season. The following information concerns operations for Year 2, the coming year, and for the first two quarters of Year 3. 2. Based on the sales budget in units, the production budget is prepared as follows: Budgeted unit sales Add desired ending finished Total needs Less beginning finished goods inventory Required production A. Golden Wolves Statue C ompany is now making y the forward-facing statue with the Alvernia University t-shirt and sells the produet for $150unit Budgeted unit sales for the next six quarters are as follows (all sales are on eredit). goods in NA 1000 300 B. 7596 in the quarter the sales are made, and the Sales are collected in the following pattern: rernaining 25% in the following quarter. On Jamaary 1, Year 2, the company's balance sheet shows S6,500 in aceounts receivable, all of which will be collected in the first quarter of the year. Bad debts are negligible and can be ignored 3. Based on the production budget, resin raw materials will need to be purchased during the C. The company desines an ending finished goods inventory at the end of each quarter equal to 30% of budgeted unit sales for the next quarter. On December 31, Year 1 . the cornpany had 400 units on hand Quarter Quarter D. As you know from the cost table, 2 pounds of resin, 1 t-shirt, and a box are required to complete one unit of the product. As stated above, the company has sufficient t-shirts and boxes to last through Year 3 due to a gift- e company requires ending raw mater als inventory at the end of each quarter equal to 10% of the following quarter's production needs. On December 31, Year 1, the company had 230 pounds of resin on hand Required production in units of finished goods Units of resin raw materials needed goods Units of raw materials needed to meet production Add desired units of ending raw materials inventory Total units of raw materials needed Less units of beginning raw materials inventory Units of raw materials to be E. The price of the resin and the t-shirts stayed the same as presented in the cost table . S4.00 per unit of finished per pound of resin (2 lbs per statuc), S0.75 per t-shirt and $0.40 per box. Raw material purchases are paid for in the following pattern: 6O paid in the quarter the purchases are made, and the remaining 40% paid in the following quarter, Golden Wolves Statues was given a gift of enough t-shirts and boxes at the end of Year 1 to last through Year 3. On January 1. Year 2, the company"s balance sheet showed $366 in accounts payable for the total of resin raw material, all of which will be paid for in the first quarter of the year N/A N/A N/A N/A Prepare the following budgets and schedules for the Year 2. showing both quarterly and tota figures: . A sales budget and a schedule of expected cash collections 2. A production budget 3. A direet material budget and a schedule of expeeted cash payments for purchases of Unit cost of raw materials Cost of raw materials to be Use the charts below for your answers: 1. The sales buduet: Based on the raw material purchases above, expected cash payments are computed as follows (leave any box blank which does not need to be filled in): Budgeted unit sales Selling price per unit Year 2 Quarter 4 Based on the budgeted sales above, the schedule of expected cash collections is prepared as follows (Leave any box blank which does not need to be filled in) Beginning accounts payable First quarter purchases ($1.096 x 60% in qus.rter 1 and x 40%, in quarter 2) Second quarter purchases (S5,864 x 60% in quarter 2 and x 40% in quarter 3) Third quarter purchases (S6,532 x 60% in quarter 3 and x 40% in uarter 4) Fourth quarter purchases ($4,420 x 60%, in qusrter 4) Total cash disbursements 550 Second quarter sales (sales ($90,000 x 759 in q"arter 2. Third quarter sales sales $150,00075% in quarter 3. 75% in quarter 4) Total cash collections