The company PR Products Corp. estimates that its quarterly sales for the next year are as follows: (units) The price per unit is $ 70

1. 1 Quarter 30,000 units

2. 2 Quarter 50,000

3. 3 Quarter 60,000

4. 4 Quarter 40,000

Accounts receivable as of December 31 are $ 90,000. The company estimates that sales are charged 60% in the quarter they are made and 40% in the following quarter.

Finished Goods' desired ending inventory represents 20% of next or next quarter unit sales. Finished Goods starting inventory is 6,000 units.

3 pounds of Raw Material per unit is required for the production required. Raw Material's desired inventory is 10% of the required production for the next quarter. Raw Material's initial inventory is 12,000 units. The cost of Raw Material is $ 1.00 per pound.

Accounts payable on 12/31 / X0 total $ 60,000. Payments for Raw Material purchases are made at the rate of 70% in the quarter of purchase and the other 30% in the following quarter.

The invested time of direct labor per unit is 1.5 hour. The hourly direct labor cost is $ 20.00.

Requirements:

5. Prepare budgets for Sales, Collections, Production, Raw Material, Disbursements, and Direct Labor. Use the formats provided below. Please write clearly, legibly and cleanly. (Avoid losing points)

6. Sales Budget

	T1	T2	T3	T4	Year
Total Sales	$	$	$	$	$