Construct the sales budget Year 2 Quarter Year 3 Quarter 1 3 4 2 Budgeted unit sales Selling price per unit Total sales Construct the schedule of expected cash collections Year 2 Quarter 1 2 4 Year Accounts receivable, beginning balance First-quarter sales Second-quarter sales Third-quarter sales Fourth-quarter sales Total cash collections Construct the production budget Year 2 Quarter Year 3 Quarter 2 3 4 Year 1 2 Budgeted unit sales Add desired ending finished goods inventory Total needs Less beginning inventory Required production Raw materials purchases budget Year 2 Quarter Year 3 Quarter 1 2 3 4 Year Required production (units) Raw materials required to produce one unit Production needs (pounds) Add desired ending inventory of raw materials (pounds) Total needs (pounds) Less beginning inventory of raw materials (pounds) Raw materials to be purchased Cost of raw materials per pound Cost of raw materials to be purchased Construct the schedule of expected cash payments Year 2 Quarter 1 2 3 4 Year Accounts payable, beginning balance 60,400 60,400 First-quarter purchases 0 Second-quarter purchases Third-quarter purchases 0 $ Fourth-quarter purchases 0 $ Total cash disbursements 60,400 $ $ $ 60,400Year 2 Quarter Year 3 Quarter F 2 3 4 2 Budgeted unit sales 30,000 35,000 42,000 50,000 30,000 40,000 . Selling price per unit $9 per unit * Accounts receivable, beginning balance $40,500 . Sales collected in the quarter sales are made 80% . Sales collected in the quarter after sales are made 20% . Desired ending finished goods inventory is 20% of the budgeted unit sales of the next quarter . Finished goods inventory, beginning 8,000 units . Raw materials required to produce one unit 6 pounds . Desired ending inventory of raw materials is 10% of the next quarter's production needs . Raw materials inventory, beginning 23,000 pounds Please use for . Raw material costs $0.75 per pound Tab 4 Only . 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 balanc $60,400