Use the attached Excel spreadsheet to determine the raw materials purchases budget for the year.

Data	Year 2 Quarter				Year 3 Quarter
	1	2	3	4	1	2
Budgeted unit sales	40,000	60,000	100,000	50,000	70,000	80,000
Selling price per unit	$8
Desired ending finished goods inventory is	30%	of the budgeted unit sales of the next quarter
Finished goods inventory, beginning	12,000	units
Raw materials required to produce one unit	5	pounds
Desired ending inventory of raw materials is	10%	of the next quarter's production needs
Raw materials inventory, beginning	23,000	pounds
Raw material costs	$0.80	per pound
Construct the sales budget	Year 2 Quarter				Year 3 Quarter
	1	2	3	4	1	2
Budgeted unit sales	40,000	60,000	100,000	50,000	70,000	80,000
Selling price per unit	$8	$8	$8	$8	$8	$8
Total sales	$320,000	$480,000	$800,000	$400,000	$560,000	$640,000
Construct the production budget	Year 2 Quarter					Year 3 Quarter
	1	2	3	4	Year	1	2
Budgeted unit sales	40,000	60,000	100,000	50,000	250,000	70,000	80,000
Add desired ending finished goods inventory	18,000	30,000	15,000	21,000	21,000	24,000
Total needs	58,000	90,000	115,000	71,000	271,000	94,000
Less beginning finished goods inventory	(12,000)	(18,000)	(30,000)	(15,000)	(12,000)	(21,000)
Required production in units	46,000	72,000	85,000	56,000	259,000	73,000
Construct the raw materials purchases budget	Year 2 Quarter					Year 3 Quarter
	1	2	3	4	Year	1
Required production (units)	?	?	?	?	?	?
Raw materials required to produce one unit (pounds)	?	?	?	?	?	?
Production needs (pounds)	?	?	?	?	?	?
Add desired ending inventory of raw materials (pounds)	?	?	?	?	?
Total needs (pounds)	?	?	?	?	?
Less beginning inventory of raw materials (pounds)	?	?	?	?	?
Raw materials to be purchased (pounds)	?	?	?	?	?
Cost of raw materials per pound	?	?	?	?	?
Cost of raw materials to be purchased	?	?	?	?	?