Sheridan Company is preparing its master budget for 2020. Relevant data pertaining to its sales, production, and direct materials budgets are as follows. Sales. Sales for the year are expected to total 1,100,000 units. Quarterly sales are 22%, 27%, 26%, and 25%, respectively. The sales price is expected to be $38 per unit for the first three quarters and $45 per unit beginning in the fourth quarter. Sales in the first quarter of 2021 are expected to be 15% higher than the budgeted sales for the first quarter of 2020. 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 $10 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 2021 are 492,000 pounds. Prepare the sales, production, and direct materials budgets by quarters for 2020. SHERIDAN COMPANY Sales Budget For the Year Ending December 31, 2020 Quarter 3 $ $ SHERIDAN COMPANY Production Budget ear Ending December 31, 2020 $ Year Quarter 2 3 Year ERIDAN COMPANY ct Materials Budget Ing December 31, 2020 Quarter 2 $ $ $ Year Sheridan Company is preparing its master budget for 2020. Relevant data pertaining to its sales, production, and direct materials budgets are as follows. Sales. Sales for the year are expected to total 1,100,000 units. Quarterly sales are 22%, 27%, 26%, and 25%, respectively. The sales price is expected to be $38 per unit for the first three quarters and $45 per unit beginning in the fourth quarter. Sales in the first quarter of 2021 are expected to be 15% higher than the budgeted sales for the first quarter of 2020. 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 $10 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 2021 are 492,000 pounds. Prepare the sales, production, and direct materials budgets by quarters for 2020. Expected Unit Sales Unit Selling Price Total Sales Expected Unit Sales Add Total Required Units Less $ $ Desired Ending Finished Goods Units Beginning Finished Goods Units Required Production Units Units to be Produced Direct Materials Per Unit Total Pounds Required for Production Add Desired Ending Direct Materials (Pounds) Total Materials Required Less Beginning Direct Materials (Pounds) Direct Materials Purchases Cost Per Pound SHERIDAN COMPANY Sales Budget For the Year Ending December 31, 2020 Quarter 2 3 $ $ Total Cost of Direct Materials Purchases 1 SHERIDAN COMPANY Production Budget For the Year Ending December 31, 2020 2 SHERIDAN COMPA Direct Materials Bu For the Year Ending December 31,21 2