The marketing department of Gaeber Industries has submitted the following sales forecast for the upcoming fiscal year 2nd Quarter Quarter Quarter Quarter Budgeted sales (units) 7,000 6,000 6,900 1st 3rd 4th 8,000 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 1720 units In addition, the beginning raw materials inventory for the first quarter is budgeted to be 3.320 kilograms and the beginning accounts payable for the first quarter are budgeted to be $15,020, Each unit requires two kilograms of raw material that costs $6 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 3,160 kilograms. Management plans to pay for 85% of raw material purchases in the quarter acquired and 15% in the following quarter Required: 1. Prepare the company's production budget for the upcoming fiscal year, GAEBER INDUSTRIES Production Budget dhe Ver Sved Hel Each unit requires two kilograms of raw material that costs $6 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 four quarter is 3,160 kilograms. Management plans to pay for 85% of raw material purchases in the quarter acquired and 15% in the following quarter. Required: 1. Prepare the company's production budget for the upcoming fiscal year. GAEBER INDUSTRIES Production Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Budgeted sales (units) Add Desired ending inventory Total units needed Deduct Beginning inventory Budgeted sales (units) 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 answer to the nearest whole dollar amount.) Year GAEBER INDUSTRIES Schedule of Expected Cash Disbursements for Materials Ist Quarter 2nd Quarter 3rd Quarter Ath Quarter Accounts payable beginning balance 1st Quarter purchase 2nd Quarter purchase 3rd Quarter purchase Ath Quarter purchase $ 05 05 0$ 05 Total cash disbursements for materials
