Crane Company is preparing its master budget for $2022.$ Relevant data pertaining to its sales, production, and direct materials budgets

are as follows.

Sales. Sales for the year are expected to total $800,000$ units. Quarterly sales are $18\%,23\%,23\%,$ and $36\%,$ respectively. The unit

selling price is expected to be $$38$ for the first three quarters and $$43$ beginning in the fourth quarter. Sales in the first quarter of

$2023$ are expected to be $10\%$ higher than the budgeted sales for the first quarter of $2022.$

Production. Management desires to maintain the ending finished goods inventories at $20\%$ of the next quarter's budgeted sales

volume.

Direct materials. Each unit requires $2$ pounds of raw materials at a cost of $$10$ per pound. Management desires to maintain raw

materials inventories at $10\%$ of the next quarter's production requirements. Assume the production requirements for first quarter

of $2023$ are $360,000$ pounds.

Prepare the sales, production, and direct materials budgets by quarters for $2022.$

CRANE COMPANY

Sales Budget

Quarter

$

$

$

$

$

$