Problem 1: Budgets PR Products Corp. The company estimates that its quarterly sales for next year are as follows: (units) Price per unit is $70 1. 1 Quarter 30,000 units 2. 2 Quarter 50,000 3. 3 Quarter 6,000 4. 4 Quarter 4,000 Accounts receivable at December 31 s on $ 9 0,000. The company estimates that sales are charged 6 0% in the quarter they are made and 4 0% in the following quarter . The final Finished inventory of Finished Goods represents 20% of sales per unit in the next or next quarter. The initial inventory of Finished Goods is 6,000 units. It takes 3 pounds of Raw Material per unit for the necessary production . The desired inventory of Raw Material is 10% of the production needed for the next quarter. The initial inventory of Raw Material is 12,000 units. The cost of Raw Material is $ 1.00 per pound. The accounts payable at 12/31 / X0 add up to $ 60,000. Payments for Raw Material purchases are made at a rate of 70% in the first quarter of the purchase and the other 3 0% in the following quarter . The invested time of direct labor per unit is 1.5 hours. The cost Direct labor per hour is $ 20.00. Requirements: Prepare budgets for Sales, Collections, Production, Raw Material, Disbursements, and Direct Labor. Use the formats that are provided below.

	Q1	Q2	Q3	Q4	Year
Total Sales	$	$	$	$	$

Expected Cash Collections

	Q1	Q2	Q3	Q4	Year
Account Receivables 12/31 / X0
Total Cash Collections	$	$	$	$	$

Production Budget

	Q1	Q2	Q3	Q4	Year
Expected sales
Desired ending inventory				8,500
Total needs
Beginning inventory
Units to be produced

Direct Material Budget

	Q1	Q2	Q3	Q4	Year
Units to be produced
RM needed per unit (pounds)
Production needs
Desired ending inventory of RM				4 , 500
Total needs
Beginning inventory of RM
RM to be purchased
Cost of RM per pound
Cost of RM to be purchased	$	$	$	$	$

Expected Cash Disbursements (Payments)

	Q1	Q2	Q3	Q4	Year
Account Payable 12/31 / X0
Total Cash Disbursements	$	$	$	$	$

Direct Labor Budget

	Q1	Q2	Q3	Q4	Year
Units to be produced
DL Time per unit
Total hours of DL needed
DL Cost per hour
Total DL Cost