Mynor Corporation manufactures and sells a seasonal product that has peak sales in the third quarter. The following information concerns operation for Year 2-the coming year-and for the first two quarters of Year 3: a. b. c. d. e. The company's single product sells for $8 per unit. Budgeted sales in units for the next six quarters are as follows (all sales are on credit): Budgeted Sales nits QI 40,000 Year 2 60,000 100,000 Q4 50,000 Year 3 70,000 80,000 Sales are collected in the following pattern: 75% in the quarter the sales are made, and the remaining 25% in the following quarter. On January 1, Year 2, the company's balance sheet showed $65,000 in accounts receivable, all of which will be collected in the first quarter of the year. Bad debts are negligible and can be ignored. The company desires an ending inventory finished goods inventory at the end of each quarter equal to 30% of the budgeted sales in units for the next quarter. On December 31, Year 1, the company had 12,000 units on hand. Five pounds of raw materials are required to complete one unit of product. The company requires ending raw materials inventory at the end of each quarter equal to 10% of the following quarter's production needs. On December 31, Year 1, the company had 23,000 pounds of raw materials on hand. The raw material costs $0.80 per pound. Raw material purchases are paid for in the following pattern: 60% paid in the quarter the purchases are made, and the remaining 40% paid in the following quarter. On January 1, Year 2, the company's balance sheet showed $81,500 in accounts payable for raw material purchases, all of which will be paid for in the first quarter of the year. Required: Prepare the following budgets for the year, showing both quarterly and total figures: 1. A sales budget and a cash receipts budget for expected cash collections. 2. A production budget. 3. A direct material budget in pounds and a cash payment budget for purchases of materials.