Solar Tech Manufacturing requires a special ceramic tile used as a component in residential solar energy systems. Sales are seasonal due to the seasonality in the home-building industry

The expected pattern of sales for the next year (2021) is as follows

Quarter

1^st2^nd 3^rd 4^th Year

Sales in units 200060008000400020000

Each tile sells for $25. All sales are on account and Solar Tech's experience with cash collection is in the month of sale. Sales in 4^th quarter of 2020 are expected to be $ 100000 (4000 units)

Solar Tech desires to have 10% of the following quarter sales needs in finished goods inventory at the end of each quarter. On 31^st December 2020 Company expects to have 200 units in inventory

Each tile required 2 kg of raw material, Solar Tech desires to have 10% of the next quarter's raw material in inventory at the end of each quarter. (On December 31, 2020, Company has 480 kg's of raw material in inventory

The price of the raw material is $ 5 per kg. The company buys its raw material on the account and pays 70% of the resulting accounts payable during the quarter of the purchase. The remaining 30% will be paid in the next quarter. (The raw materials purchased in the fourth quarter of 2020 are expected to be $36600)

Prepare the following

a.Sales budget

b.Production budget

c.Direct materials budget