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Question 2 0.64/1 View Policies Show Attempt History Current Attempt in Progress AyayaiCompany is preparing its master budget for 2017. Relevant data pertaining to its sales, production, and direct materials budgets are as follows. Sales Sales for the year are expected to total 1,900,000 units. Quarterly sales are 22% 27%, 25%, and 26%, respectively. The sales price is expected to be $40 per unit for the first three quarters and $45 per unit beginning in the fourth quarter. Sales in the first quarter of 2018 are expected to be 10% higher than the budgeted sales for the first quarter of 2017. Production Management desires to maintain the ending finished goods inventories at 25% of the next quarter's budgeted sales volume. Direct materials. Each unit requires 2 pounds of raw materials at a cost of $11 per pound. Management desires to maintain raw materials inventories at 10% of the next quarter's production requirements. Assume the production requirements for first quarter of 2018 are 496,000 pounds. - Your answer is partially correct. Prepare the production budget by quarters for 2017. AYAYAI COMPANY Production Budget For the Year Ending December 31, 2017 Quarter Year Expected Unit Sales 418000 513000 475000 494000 Add : Desired Ending Finished Goods Inventory 128250 118750 123500 114950 Total Required Units 546250 631750 598500 608950 Less 1 Beginning Finished Goods Inventory 128250 118750 i 123500 i Required Production Units 546250 - 503500 503500 479750 485450 2014950 e Textbook and Media - Your answer is partially correct. Prepare the direct materials budget by quarters for 2017. AYAYAI COMPANY Direct Materials Budget For the Year Ending December 31, 2017 Quarter 2 3 Year Year 100700 95950 97090 49600 1092500 1007000 959500 970900 1193200 1102950 1056590 1020500 100700 95950 97090 1193200 1002250 960640 923410 4079500 13125200 11024750 10567040 10157510 44874500 eTextbook and Media