1. The following are the sales forecast of Avril Furniture Company for the upcoming fiscal year:

Year 2					Year 3
	Quarter 1	Quarter 2	Quarter 3	Quarter 4	Quarter 1
Budgeted unit sales	10,000	16,000	15,000	23,000	30,000

Past experience has shown that the ending inventory for each quarter should be equal to 10% of the next quarters sales in units. The company expect to start the first quarter with 4,000 units.

Two pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each quarter equal to 25% of the next quarter's production needs for material A. Fourth quarter ending of materials is estimated as 8,000 pounds and a total of 12,000 pounds of material A are on hand to start the year. The cost of material A is $3 per pound.

Required:

1. Prepare a production budget showing the number of units to be produced each quarter and for the year in total
2. Prepare Avrils Direct Material Budget and calculate direct materials dollar amount of purchases by quarter and for the year in total