Question 4 of 4 2.47/3 View Policies Show Attempt History Current Attempt in Progress On January 1, 2020, the Crane Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2020. Sales units: Ending raw materials inventory: Ending finished goods inventory: Third-quarter production: First quarter 5,100; second quarter 6,800; third quarter 7,300. 40% of the next quarter's production requirements. 25% of the next quarter's expected sales units. 7,390 units. The ending raw materials and finished goods inventories at December 31, 2019, follow the same percentage relationships to production and sales that occur in 2020.4 pounds of raw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost $5 per pound. Your answer is correct. Prepare a production budget by quarters for the 6-month period ended June 30, 2020. CRANE COMPANY Production Budget For the Six Months Ending June 30, 2020 Quarter 1 2. Expected Unit Sales 5100 6800 Add Desired Ending Finished Goods Unit 1700 1825 Total Required Units 6800 8625 Total Required Units 6800 8625 Less : Beginning Finished Goods Unit 1275 i 1700 i Required Production Units 5525 6925 e Textbook and Media Your answer is partially correct. Prepare a direct materials budget by quarters for the 6-month period ended June 30, 2020. CRANE COMPANY Direct Materials Budget For the Six Months Ending June 30, 2020 Quarter 1 2. Units to be produced 5525 6925 Direct Materials Per Unit 4 4 Total Pounds Needed for Production 22100 27700 Add : Desired Ending Direct Materials (Pounds) Total Materials Required Less Beginning Direct Materials (Pounds) Total Materials Required Less : Beginning Direct Materials (Pounds) Direct Materials Purchases Cost Per Pound $ 5 5 $ 5 Total Cost of Direct Materials Purchases $ e Textbook and Media