SarasotaCompany 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 18%, 25%, 23%, and 34%, respectively. The sales price is expected to be $38 per unit for the first three quarters and $47 per unit beginning in the fourth quarter. Sales in the first quarter of 2018 are expected to be 10% 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 quarter's budgeted sales volume. Direct materials. Each unit requires 2 pounds of raw materials at a cost of $12 per pound. Management desires to maintain raw materials inventories at 10% of the next quarter's production requirements. Assume the production requirements for first quarter of 2018 are 500,000 pounds. - Your answer is partially correct. Prepare the sales budget by quarters for 2017. SARASOTA COMPANY Sales Budget For the Year Ending December 31, 2017 Quarter Year Expected unit sales Unit selling price | | Total sales Prepare the production budget by quarters for 2017. SARASOTA COMPANY Production Budget For the Quarter Ending December 31, 2017 4 Quarter Year Expected Unit Sales 10300 Desired Ending Finished Goods Inventory Total Required Units Less : Beginning Finished Goods Inventory Required Production Units Prepare the direct materials budget by quarters for 2017. SARASOTA COMPANY Direct Materials Budget For the Year Ending December 31, 2017 - Quarter Year Units to be Produced Direct Materials Per Unit Total Pounds Required for Production - Desired Ending Direct Materials Total Materials Required ] Beginning Direct Materials Direct Materials Purchases Cost Per Pound Total Cost of Direct Materials Purchases & $ $ $