Symphony Electronics produces wireless speakers for outdoor use on patios, decks, etc. Their most popular model is the All Weather and requires four separate XL12 components per unit. The company is now planning raw material needs for the second quarter. Sales of the All Weather are the highest in the second quarter of each year as customers prepare for the summer season. The company has the following inventory requirements: a. The finished goods inventory on hand at the end of each month must be equal to 16,500 units plus 10% of the next month's sales. The finished goods inventory on March 31 is budgeted to be 25,000 units. b. The raw materials inventory on hand at the end of each month must be equal to 20% of the following month's production needs for raw materials. The raw materials inventory on March 31 for XL 12 is budgeted to be 98,500 components. c. The company maintains no work in process inventories. A sales budget for the All Weather speaker is as follows: April May June Budgeted Sales in Units 124,000 143,000 220,000 July August 120,000 58,100 Required: 1. Prepare a production budget for the All Weather for April, May, June and July. April May June July Budgeted sales (units) 124,000 143,000 220,000 120,000 Add: Desired ending inventory 30,800 38,500 28,500 22,310 Total needs 154,800 181,500 248,500 142,310 Less: Beginning inventory 25,000 30,800 38,500 28,500 Required production 129,800 150,700 210,000 113,810 2. Prepare a direct materials purchases budget showing the quantity of XL 12 components to be purchased for April, May and June and for the quarter in total. April May June Second Quarter Required production (units) 129,800 150,700 210,000 490,500 XL 12 components needed per unit 4 4 4 4 Production needs 519,200 602,800 840,000 1,962,000 Add: Desired ending inventory 120,560 168,000 387,060 Total XL 12 needs 639,760 770,800 840,000 2,349,060 Less: Beginning inventory 120,560 168,000 392,400 Material XL 12 purchases 519,200 602,800 840,000 1,956,660