Cryon Corporation manufactures and sells a seasonal product that has a peak in sales in the third quarter. The following information reflects projections for Year 2 the coming year and the first quarter of Year 3.

A- Units sell at $10 each. Budgeted sales for the next 5 quarters are outlined below.

	Year 2 Quarter				Year 3
	1	2	3	4	1
Budgeted unit sales	50,000	70,000	120,000	70,000	60,000

B- Sales are collected in the following pattern: 75% are collected in the quarter the sales are made, and the remaining 25% are collected in the following quarter. On January 1, Year 2, the company had accounts receivable of $65,000, all of which will be collected in the first quarter of Year 2. Bad debts are negligible and can be ignored.

C- The company desires finished goods inventory at the end of each quarter equal to 30% of the budgeted unit sales for the next quarter. On December 31, Year 1, the company had 15,000 completed units on hand.

D- Five pounds of raw materials inventory is required to complete one unit of product. The company requires ending raw materials inventory at the end of each quarter equal to 10% of the following quarters production needs. On December 31, Year 1, the company had 38,000 pounds of raw material on hand.

Raw material cost is $0.80 per pound.

Required: Prepare the following budgets and schedules for Year 2, showing quarterly figures:

1- Sales budget

2- Schedule of expected cash collections

3- Production budget

4- Direct materials budget that summarizes both pounds and dollars

You should use an Excel spreadsheet for your answers