Osprey Corp. manufactures and sells a widget that has peak sales in the third quarter. The following information concerns operations for 2022 - the coming year - and the first two quarters of 2023.

• Osprey's sells widgets for $10 each. Budgeted unit sales for the next six quarters are as follows (all sales are on credit):

	Year 2022 Quarter					Year 2023 Quarter
	1	2	3	4		1	2
Budgeted unit sales	40,000	50,000	100,000	60,000		50,000	40,000

• 80% of the receipts due from sales is collected in the quarter the sales were made and the remaining 20% is collected in the following quarter. On 12/31/21 the company's balance sheet showed $50,000 in accounts receivable, all of which will be collected in the first quarter of 2022.
• The company desires an ending finished goods inventory at the end of each quarter equal to 20% of the budgeted unit sales for the next quarter. On 12/31/21, the company had 8,000 widgets on hand.
• Six pounds of raw materials are required per widget. The company requires ending raw materials inventory at the end of each quarter equal to 20% of the following quarter's production needs. On 12/31/21 Osprey had 50,400 pounds of raw materials on hand. The raw materials costs $0.50 per pound. Raw materials are paid for in the following pattern: 70% in the quarter the purchases are made, and the remaining 30% paid in the following quarter. On 12/31/21 Osprey's balance sheet showed $70,000 in accounts payable for raw materials purchases, all of which will be paid in the first quarter of 2022.

You will need to prepare a Production Budget to answer question Question 4

Question 4

How many widgets need to be produced in the 3rd quarter of 2022?

You will need to prepare a Direct Materials Budget to answer question 5.

Question 5

How many pounds of materials will need to be purchased in the 2nd quarter

You will need to prepare a Schedule of Expected Cash Payments for materials to answer question 6

Question 6

What are the expected cash disbursements for materials in the 3rd quarter of 2022?