Data Your 2 Quarter 60.000 100.000 , Year 3 Quarter Budgeted unit sales 40,000 50,000 70,000 80,000 - Selling price per unit Accounts receivable, beginning balance Sales collected in the quarter sales are made 0 - Sales collected in the quarter after sales are made 1. Desired ending finished goods inventory is 2. Finished goods inventory beginning 3. Raw materials required to produce one unit 4. Desired ending inventory of raw materials is 5 . Raw materials inventory beginning 5 - Raw material costs 7. Raw materials purchases are paid 58 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 9. Accounts payable for raw materials, beginning balance Create the raw materials purchases 8 budget Year 2 Quarter Year 3 Quarter 717 ? ? 27 721 ?| ? ? 2 Required production (units) 51 Raw materials required to produce one unit 52 Production needs (pounds) 13 Add desired ending inventory of raw materials (pounds) 14 Total needs (pounds) 55 Less beginning inventory of raw materials (pounds) 56 Raw materials to be purchased 57 Cost of raw materials per pound 58 Cost of raw materials to be purchased ? ? ? 27 Create the schedule of expected cash payments 1 Year 2 Quarter 2 3 27 7 Accounts payable, beginning balance First quarter purchases Second-quarter purchases Third-quarter purchases Fourth-quarter purchases Total cash disbursements 2 2221