Exercise 20-6 (Algo) Manufacturing: production budgets LO P1 Electro Company manufactures transmissions for electric cars. Management reports ending finished goods inventory for the first quarter at 203,000 units. The following unit sales are budgeted during the rest of the year: second quarter, 406,000 units; third quarter, 376,000 units; and fourth quarter, 426,500 units. Company policy calls for the ending finished goods inventory of a quarter to equal 50% of the next quarter's budgeted unit sales. Prepare a production budget for both the second and third quarters that shows the number of transmissions to manufacture. Exercise 20-10 (Algo) Manufacturing: Direct materials budget LO P1 Electro Company budgets production of 560,000 electric panels in the second quarter and 630,000 electric panels in the third quarter. Each panel requires 0.80 pound of direct material at a cost of $1.20 per pound. The company desires to end each quarter with an ending inventory of this material equal to 20% of next quarter's budgeted materials requirements. Beginning inventory of this material is 89,600 pounds. Prepare a direct materials budget for the second quarter. QS 20-19 (Algo) Schedule of cash receipts LO P2 Music World reports the following budgeted sales: August, $190,000; and September, $210,000. Cash sales are 40% of total sales, and all credit sales are collected in the month following the sale. Prepare a schedule of cash receipts from sales for September