"Do It! Review 21-2 Paroo Company is preparing its master budget for 2017 Relevant data pertaining to sales, production, and direct materials budgets are as follows Sales Sales for the year are expected to total 1,200,000 Quarterly sales are 20, 25, 26, 27, sectively. The sales prices expected to be per unit for the first three quarters and perunt beginning on the first cuarter of 2018 are expected to be higher than the budgeted sales for the quarter of 2017. Production Mappement desires to maintain the ending the goods investores arbetades volone Direct materials. Each unit requires 2 pounds of raw materials the cost of $10 per permet deres to mana raw materials inventaries at 10% of the next quarter's production requirements Accorrerements for starter of 2018 are 510,000 pounds Prepare the sales production, and direct materials budgets by cuarters for 2017 PRO COMPANY Sales Budget For the Year Endray Decemba 31, 2017 1,200 x 24% = 348,00 1,200,00 * 214-312, 1,209, 254 160, 1,200,0w X 201 340 x 4 Tea 1 2 Expected unt sales 340,000 3000cc 312,00 318000 2000 40 $ 40 Unt siling prices Total sales Aleppo she 513,10,629.00 (24o, ao x 4 PAGO COMPANY Production Budget FOR the year Ending December 31, 2017 Quartier Year 2 expected unst sales 249000 300 400 312,000 345,000 AJA Desired Ending Finished winds 75000 78,000 594000 Total Required Units 315,000 35.000 less Beginning Finished Goods 00,000 75,000 To0o 81000 255 000 33000 Bapoo (240,000x ast) For the Decola 31,200 Required Production unity ROD COMPANY Diret Materials Buget the Year Ending Quarter 2 Year 321,00 2 2 poids $1,000 ($10,000x 16%) Units to be Producent 255,6% 39,5 Direct Materials per unit Total Pounds Required for Pro 510,000 La0000000 Add Desired Ending Direct Mater 60,600 61,200 (666003 x6% Total material reputant 570,606 670,200 less: Beginning Direct Matert - 51000 U1200 (642,00*%) Direct Materials Purchases 519,600 borboo Cost per pound 10 Total Cost of Direct Material 5, 196,00 6,056 per: purchases 10 V 10 $ $10 5