Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The company sells its product to retailers throughout the northeastern quadrant of the United States. It is in the process of creating a master budget for $2022$ and reports a balance sheet at December $31,2021$ as follows: Use this information for the questions IE $-16$ through IE $-19$

$[$The following information applies to the questions displayed below.$]$

Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The

company sells its product to retailers throughout the northeastern quadrant of the United States. It is in the process of

creating a master budget for $2022$ and reports a balance sheet at December $31,2021$ as follows:

The company's chief financial officer $($CFO$),$ in consultation with various managers across the organization has developed

the following set of assumptions to help create the $2022$ budget: The budgeted unit sales are $12,000$ units, $37,000$ units, $15,000$ units, and $25,000$ units for quarters $1-4,$ respectively.

Notice that the company experiences peak sales in the second and fourth quarters. The budgeted selling price for the

year is $$32$ per unit. The budgeted unit sales for the first quarter of $2023$ is $13,000$ units.

All sales are on credit. Uncollectible accounts are negligible and can be ignored. Seventy$-$five percent of all credit sales

are collected in the quarter of the sale and $25\%$ are collected in the subsequent quarter.

Each quarter's ending finished goods inventory should equal $15\%$ of the next quarter's unit sales.

Each unit of finished goods requires $3\mathrm{.}5$ yards of raw material that costs $$3\mathrm{.}00$ per yard. Each quarter's ending raw

materials inventory should equal $10\%$ of the next quarter's production needs. The estimated ending raw materials

inventory on December $31,2022$ is $5,000$ yards.

Seventy percent of each quarter's purchases are paid for in the quarter of purchase. The remaining $30\%$ of each

quarter's purchases are paid in the following quarter.

Direct laborers are paid $$18$ an hour and each unit of finished goods requires $0\mathrm{.}25$ direct labor$-$hours to complete. All

direct labor costs are paid in the quarter incurred.

The budgeted variable manufacturing overhead per direct labor$-$hour is $$3\mathrm{.}00.$ The quarterly fixed manufacturing

overhead is $$150,000$ including $$20,000$ of depreciation on equipment. The number of direct labor$-$hours is used as

the allocation base for the budgeted plantwide overhead rate. All overhead costs $($excluding depreciation$)$ are paid in

the quarter incurred.

The budgeted variable selling and administrative expense is $$1\mathrm{.}25$ per unit sold. The fixed selling and administrative

expenses per quarter include advertising $($ $$25,000),$ executive salaries $($ $$64,000),$ insurance $($ $$12,000),$ property tax

$($ $$8,000),$ and depreciation expense $($ $$8,000).$ All selling and administrative expenses $($excluding depreciation$)$ are paid

in the quarter incurred.

The company plans to maintain a minimum cash balance at the end of each quarter of $$30,000.$ Assume that any

borrowings take place on the first day of the quarter. To the extent possible, the company will repay principal and

interest on any borrowings on the last day of the fourth quarter. The company's lender imposes a simple interest rate of

$3\%$ per quarter on any borrowings.

Dividends of $$15,000$ will be declared and paid in each quarter.

The company uses a last$-$in$,$ first$-$out $($LIFO$)$ inventory flow assumption. This means that the most recently purchased

raw materials are the "first$-$out" to production and the most recently completed finished goods are the "first$-$out" to

customers. Prepare the quarterly sales budget including a schedule of expected cash collections. Prepare the quarterly production budget.Prepare the quarterly direct materials budget including a schedule of expected cash disbursements for purchases of materials. $($Round "raw

materials per unit" to $1$ decimal place. Round final answers to the nearest whole number.$)$