Max, Inc., plans to make sales budget schedule and a purchases budget schedule for 20-3. Management has set a sales goal of 250,000 units. After reviewing price trends, the sales manager projects that Max will need to increase its unit sales price from $12.50 to $14.00 in the first quarter.

The sales manager, after checking with the company's merchandise suppliers, projects that the cost of merchandise will increase from $7.00 to $7.50 per unit in the first quarter of 20-3.

Quarterly unit sales for 20-2 are as follows:

1st quarter 58,500 units, 2nd quarter 62,700 units, 3rd quarter 68,900 units, 4th quarter 43,900 units

After considering the time to reorder merchandise, the sales manager requests that 30.0% of the next quarter's unit sales be available in the prior quarter's ending inventory. Ending inventory for 20-2 is 27,700 units. Management projects that 65,000 units will be sold in the first quarter of 20-4.

Instructions:

1. make a sales budget schedule (Schedule 1) for the four quarters ended December 31, 20-3. Max rounds unit amounts to the nearest hundred units, dollar amounts to the nearest $10, and percentage amounts to the nearest 0.1% .

2. make a purchases budget schedule (Schedule 2) for the four quarters ended December 31, 20-3.