QUESTION ONE The marketing department of Joy Riders Industries has submitted the following sales forecast for the upcoming fiscal year. 2nd quarter 3rd quarter 4th quarter Budgeted unit sales 8,000 Management desires an ending finished goods inventory in each quarter equal to 20% of the The company expects to start the first quarter with 1600 units in finished goods inventory next quarter's budgeted sales. The desired ending finished goods inventory for the forecast quarter is 1700 units. 15 quarter 7000 6000 7000 In addition, the beginning raw materials inventory for the first quarter is budgeted to be 3120 kg and the beginning accounts payable for the first quarter is budgeted to be Kshs. 14.820. Each unit requires 2 kg of raw material that costs Kshs.4 per kg. Management desires to end each quarter with an inventory of raw materials equal to 20% of the followings quarter's production needs. The desired cnding inventory for the fourth quarter is 3140 kg. management plans to pay for 75% of raw material purchases in the quarter acquired and 25% in the following quarter. Required: 1. (10 marks) 2. Prepare the company's production budget for the upcoming fiscal year. prepare the company's direct materials budget and schedule of expected cash disbursements for purchases of materials for the upcoming fiscal year. (15 marks) [Total: 25 marks]