- g On January 1, 2022, the Blue Spruce Company budgeted the following for the year ended December 31, 2022: Ao Sales units: First quarter 4,500: second quarter 5,300; third quarter 6,500; fourth quarter 6,900 units: First and second quarters of 2023: 7,300 units. 22, Ending raw materials inventory: 40% of the next quarter's production requirements. 3. Ending finished goods inventory: 30% of the next quarter's expected sales in units. 4. Desired production for first quarter of 2023 is 7,300 units. X 3 kilograms of raw materials are needed to make each unit of finished goods. Raw materials purchased are expected to cost $3 per kilogram. Prepare a production budget and a direct materials budget by quarters for the year ended December 31, 2022. BLUE SPRUCE COMPANY Production Budget For 2022 Quarter 1 Quarter 2 Quarter Expected unit sales 14 |