Sales Budget The Bottled Water Company Sales Budget For the Year Ended December 31 Year 175,000 Q1 02 30,000 50,000 Sales in Units x Selling Price per unit Total Sales 40,000 $1 55,000 $1 $1 $1 $1 40,000 $30,000 $50,000 $55,000 $175,000 Production Budget The Bottled Water Company Production Budget For the Year Ended December 31 Q2 30,000 Year Sales in Units 40,000 50,000 55,000 175,000 Plus desired units of ending Finished goods inventory Desired total units Less desired units of beg 3,000 43,000 5,000 35,000 55,000 55,500 6,000 61,000 6,000 181,000 Finished goods inventory Total Production Units 4,000 39,000 3,000 32,000 5,000 50,500 5,500 55,500 4,000 177,000 Direct materials purchase budget The Bottled Water Company Direct Materials Purchases Budget For the Year Ended December 31 Q1 Q2 32,000 Q3 50,500 Q4 55,500 Year 39,000 20 Total production units x 20 ounces per unit Total production needs in ounces Plus desired ounces of ending 177,000 20 780,000 640,000 1,010,000 1,110,0003,540,000 20 20 20 direct material inventory 240,000 908,000 842,000 1,232,000 1,350,0003,780,000 128,000 202,000222,000240,000 Less desired ounces of beg direct materials inventory Total ounces of direct materials 156,000-128,000-202,000-222,000-156,000 to be purchased x cost per ounce Total cost of direct materials 752,000 714,000 1,030,000 1,128,0003,642,000 $0.01 S0.01 $0.01 $0.01 $0.01 purchases $7,520 $7,160 $10,300 $11,280 $36,240