em Sales Budget 91 Year Expected Units Sales 6,000 6,000 6,000 6,000 Unit Selling Price 75.00 $ 75.00 $ 75.00 75.00 Total Sales 450,000 450,000 Production Budget Expected Units Sales 6,000 6,000 Add: Desired Ending Finished Goods Inventory 1 500 2.000 Total Requried Units 7.500 8,000 Less: Beginning Finished Goods Units 1,000 1.500 Required Production Units 6.500 6,500 Direct Materials Budget Units to be produced 6,500 6,500 Direct Materials Pounds Per Unit Total Pounds Needed Per Unit 19,500 19,500 Add: Desired Ending direct materials 1 800 1950 Totall Required direct materials 21,300 21 450 Less: Beginning direct materials 1 200 1,950 Direct Materials to buy 20,100 19,500 Cost Per Pound 5.00 5.00 $ 5.00 Cost of direct materials 100,500 97,500 Desired Ending Finished Goods Inventory in any quarter is 25% of the projected units sales of the next quarter Desired Ending inventory of Direct Materials in any quarter is 10% of what is needed to produce the units in the next quarter Complete the the 2nd and 3rd Quarters