Data Year 2 Quarter Year 3 Quarter Budgeted unit sales 40,000 60.000 100.000 50,000 70.000 80.000 Selling price per unit - Accounts receivable beginning balance - Sales collected in the quarter sales are made - Sales collected in the quarter after sales are made - Desired ending finished goods inventory is - Finished goods inventory beginning - Raw materials required to produce one unit - Desired ending inventory of raw materials is - Raw materials inventory beginning Raw material costs Raw materials purchases are paid and - Accounts payable for raw materials beginning balance $8 per unit $65.000 75% 25% 30% of the budgeted unit sales of the next quarter 12,000 units 5 pounds 10% of the next quarter's production needs 23,000 pounds $0.80 per pound 60% in the quarter the purchases are made 40% in the quarter following purchase $81,500 Year 2 Quarter Year 3 Quarter 25 Create the sales budget 26 27 Budgeted unit sales 28 Selling price per unit 29 Total sales ? ?| 30 Create the schedule of expected 31 cash collections Year 2 Quarter 33 Accounts receivable, beginning balance 34 First quarter sales 35 Second-quarter sales 36 Third-quarter sales 37 Fourth quarter sales 38 Total cash collections 22 ? ? ? ? 7 7 PAL Create the production budget Year 2 2 Budgeted unit sales 13 Add desired finished goods inventory 14 Total needs 15 Less beginning inventory 16 Required production