Exercise 10.19 Wayans Company produces and sells automobile batteries, including the heavy-duty HD-240. The 2020 sales budget is as follows: Quarter Units of HD-240 5,900 6,900 9,300 10,700 The January 1, 2020, inventory of HD-240 is 1,700 units. Management wants an ending inventory each quarter that is equal to 30% of the next quarter's sales. It expects sales in the first quarter of 2021 to be 20% higher than sales in the same quarter in 2020. Prepare quarterly production budgets for each quarter for 2020. WAYANS COMPANY Production Budget-Product HD-240 For the Year Ending December 31, 2020 Quarter 1 Year Unit Sales Add : Ending Inventory Total Required Less :: Beginning Inventory Total Samano Industries has adopted the following production budget for the four quarters of 2020: Quarter 1 5,900 Quarter 2 8,000 Quarter 3 8,900 Quarter 4 10,200 Units Each unit requires 4 kg of raw materials costing $6 per kilogram. On December 31, 2019, the ending raw materials inventory was 1,600 kg. Management wants to have a raw materials inventory at the beginning of each quarter equal to 30% of the current quarter's production requirements. The production budget for the first quarter of 2021 will be 11,800 units. Prepare a direct materials purchases budget by quarters for 2020. SAMANO INDUSTRIES Direct Materials Purchases Budget (kg) For the year ending December 31, 2020 Quarter Units To Be Produced Kilograms Per Unit Total Required For Production Add : Desired Ending Inventory Total Materials Required Less : Beginning Inventory Direct Materials Purchases Cost Of Kilogram Total Cost Of Materials Purchases