or Below is the estimated sales in units for Alan Shearer Company for the next six quarters Quarter Estimated sales in units 01 2,000 Q2 5,000 03 4,000 04 1,000 05 2,500 06 6,000 Production policy requires: 1. Closing inventory to equal 25% of the following quarter's sales 2. Each unit produced requires 2 kg of raw materials. 3. The purchase price of 1 kg of raw materials is $3 4. The purchase price of the raw materials increases by 5% at the beginning of the second quarter 5. Closing raw materials inventor to equal to 10% of the next quarter's production needs. 6. At the beginning of the first quarter both finished goods and raw materiais inventory balances are expected to be at the required policy Required. 1. Prepare the production budget in units and in dollars on a quarterly basis for the first four quarters, 2. Prepare the raw materials purchases budget in units and in dollars on a quarterly basis for the first four quarters. Placeanswer to requirement 1 in the table below 1. Production budget Q: 92 Q3 04 Q5 Q6 Sales (unit) Desired clos. Inventory 25% Total requirements Less Beg. inventory - Required production Place answer to requirement in the table below 2. Raw materials purchases budget Raw Materials Purchases Budget Qi Q2 Q3 24 Q5 Production requirements (units) * Raw materials per unit (kg) - Production requirements (kg) Add Desired Clos. Inventory (10% of next quarter production) Total requirements (kg) Less Beg: Inventory = Required purchases (kg) * Purchase price per kg - Required Purchases