The marketing department of Gaeber Industries has submitted the following sales forecast for the upcoming fiscal year: 1st Quarter 8,000 2nd Quarter 6,900 3rd Quarter 6,100 4th Quarter 6,900 Budgeted sales (units) 9:19 The company expects to start the first quarter with 1,600 units in finished goods inventory Management desires an ending finished goods inventory in each quarter equal to 20% of the next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 1,830 units. In addition, the beginning raw materials inventory for the first quarter is budgeted to be 4,420 kilograms and the beginning accounts payable for the first quarter are budgeted to be $16,120. Each unit requires two kilograms of raw material that costs $7 per kilogram. Management desires to end each quarter with an inventory of raw materials equal to 20% of the following quarter's production needs. The desired ending inventory for the fourth quarter is 3,270 kilograms. Management plans to pay for 60% of raw material purchases in the quarter acquired and 40% in the following quarter. Required: 1. Prepare the company's production budget for the upcoming fiscal year. GAEBER INDUSTRIES Production Budget inventory of raw materiais equal to 20% of the following quarters producuon neeus. Ine desireu enaing invenu quarter is 3,270 kilograms. Management plans to pay for 60% of raw material purchases in the quarter acquired following quarter. Required: 1. Prepare the company's production budget for the upcoming fiscal year. GAEBER INDUSTRIES Production Budget 1st Quarter 2nd Quarter 8,000 6,900 1,530 1,330 3rd Quarter 4th Quarter 6.100 1,530 6,900 1,830 Year 27.900 6,220 Budgeted sales (units) Add: Desired ending inventory Total units needed Deduct: Beginning inventory Required production 2-a. Prepare the company's direct materials budget. GAEBER INDUSTRIES Direct Materials Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total needs (kilograms) Saved 1,530 1,330 1,530 1,830 6,220 Add: Desired ending inventory Total units needed Deduct: Beginning inventory Required production 2-a. Prepare the company's direct materials budget. GAEBER INDUSTRIES Direct Materials Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total needs (kilograms) 2.b. Prepare the schedule of expected cash disbursements for materials for the upcoming fiscal year. (Round your answ nearest whole dollar amount.) DO Direct Materials Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total needs (kilograms) 2-b. Prepare the schedule of expected cash disbursements for materials for the upcoming fiscal year. (Round your answer to nearest whole dollar amount.) Year GAEBER INDUSTRIES Schedule of Expected Cash Disbursements for Materials 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Accounts payable, beginning balance 1st Quarter purchase 2nd Quarter purchase 3rd Quarter purchase 4th Quarter purchase Total cash disbursements materials $ OS $ 0 $ 0 0 $ 0
