Waterway Enterprises is a boutique guitar manufacturer. The company produces both acoustic and electric guitars for rising and established professional musicians. Nancy Jackson, the company's sales manager, prepared the following sales forecast for 2022. The forecasted sales prices include a 5% increase in the acoustic guitar price and a 10% increase in the electric guitar price, to cover anticipated increases in raw materials prices. Sales Price $1,350 $2,450 Acoustic guitar sales Electric guitar sales 1st Quarter 250 400 2nd Quarter 280 350 3rd Quarter 300 320 4th Quarter 350 360 Each acoustic guitar requires a maple neck blank, which Waterway purchases for $40. On December 31, 2021, Waterway had 200 neck blanks in inventory. The production process results in a standard quantity of 1 neck per acoustic guitar. Because of recent delivery problems, Waterway wants to maintain an ending inventory equal to 50% of the following quarter's production needs. Since the supplier has assured Waterway that the delivery issues will be resolved by the end of December, Waterway wants only 150 neck blanks in inventory on December 31, 2022. Prepare the purchases budget for neck blanks for 2022. Purchases Budget 2nd Quarter 1st Quarter 3rd Quarter $ $ $ $ $ $ Each acoustic guitar requires a maple neck blank, which Waterway purchases for $40. On December 31, 2021. Waterway had 200 neck blanks in inventory. The production process results in a standard quantity of 1 neck per acoustic guitar. Because of recent delivery problems, Waterway wants to maintain an ending inventory equal to 50% of the following quarter's production needs. Since the supplier has assured Waterway that the delivery issues will be resolved by the end of December, Waterway wants only 150 neck blanks in inventory on December 31, 2022. Prepare the purchases budget for neck blanks for 2022 Purchases Budget 2nd Quarter 3rd Quarter 4th Quarter Annual I $ $ $ $ $