Mynor Corporation manufactures and sells a seasonal product that has peak sales in the third quarter. The following information concerns operations for Year 2 - the coming year - and for the first two quarters of Year 3: a. The companys single product sells for $8 per unit. Budgeted sales in units for the next six quarters are as follows (all sales are on credit)

	year 2 quarter 1	year 2 quarter 2	year 2 quarter 3	year 2 quarter 4	year 3 quarter 1	year 3 quarter 2
budget unit sale	40000	60000	100000	50000	70000	80000

b. Sales are collected in the following pattern: 75% of the quarter of the sales are made, and the remaining 25% in the following quarter. On January 1, Year 2, the companys 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.

c. The company desires an ending finished goods inventory at the end of each quarter equal to 30% of the budgeted unit sales for the next quarter. On December 31, Year 1, the company had 12,000 units on hand.

d. 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 quarters production needs. On December 31, Year 1, the company had 23,000 pounds of raw materials on hand

e. 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 1st of Year 2, the companys 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.

Prepare the following budgets and schedules for the year, showing both quarterly and total figures:

1. A sales budget and a schedule of expected cash collections

2. A production budget

3. A direct materials budget and a schedule of expected cash payments for purchases of materials