PinaCompany 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 1,200,000 units. Quarterly sales are 20%, 25%, 26%, and 29%, respectively. The sales price is expected to be $40 per unit for the first three quarters and $43 per unit beginning in the fourth quarter. Sales in the first quarter of 2018 are expected to be 15% 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 quarters budgeted sales volume. Direct materials. Each unit requires 2 pounds of raw materials at a cost of $10 per pound. Management desires to maintain raw materials inventories at 10% of the next quarters production requirements. Assume the production requirements for first quarter of 2018 are 510,000 pounds.

Prepare the sales budget by quarters for 2017 PINA COMPANY Sales Budget For the Year Ending December 31, 2017 Quarter 2 3 Year 240000 300000 312000 348000 1200000 Expected unit sales Unit selling price Total sales $ 405 405 40$ 4 $ 96000005 120000005 12480000 149640005 49044000 Prepare the production budget by quarters for 2017 PINA COMPANY Production Budget For the Year Ending December 31, 2017 Quarter 1 2 3 Year Esoted Unit Sales 240000 300000 312000 348000 Desredning the Goods inventory Total Required Units Beginning Finished Goods Inventory Required Production Units Prepare the direct materials budget by cuarters for 2017. PINA COMPANY Direct Materials Budget For the Year Endine December 31, 2017 Quarter 2 3 Year Units to be produced Direct MaterialsPer Una Total Pounds Required for Production AM Desired Ending Direct Materials Total Materials Required Begiving Direct Materials Direct Materials Purchases Cost Per Pound S S 5 5 Total Cost of Direct Materials Purchases S S