WERDEN RACK NEXT Do It! Review 10.12 al-a3 Oak Creek Company is preparing its master budget for 2020. Relevant data pertaining to its sales, production, and direct materials budgets are as follows. Sales: Sales for the year are expected to total 1,000,000 units. Quarterly sales are 20%, 25%, 25%, and 30%, respectively. The sales price is expected to be $10 per unit for the first three quarters and $45 per unit beginning in the fourth quarter. Sales in the first quarter of 2021 are expected to be 10% higher than the budgeted sales for the first quarter of 2020. Production: Management desires to maintain the ending finished goods inventories at 20% of the next quarter's budgeted sales volume. Direct materials: Each unit requires 2 kg of raw materials at a cost of $10 per kilogram. Management desires to maintain raw materials inventories at 10% of the next quarter's production requirements. Assume the production requirements for the first quarter of 2021 are 500,000 kg. Your answer is partially correct. Try again. Prepare the sales budget by quarters for 2020. OAK CREEK COMPANY Sales Budget For the Year Ending December 31, 2020 Quarter 2 3 1 Year 200000 250000 250000 300000 1000000 Unit sales CALDE MESSAGE MY INSTRUCTOR FULL SCRE Your answer is partially correct. Try again. Prepare the sales budget by quarters for 2020. OAK CREEK COMPANY Sales Budget For the Year Ending December 31, 2020 Quarter 2 3 4 Year 200000 250000 Unit sales 250000 300000 1000000 X 40 40 40 40 Unit price 8000000 100000000 10000000 12000000 4000080 Total sales LINK TO TEXT Your answer is partially correct. Try again. Your answer is partially correct. Try again. Prepare the production budget by quarters for 2020. OAK CREEK COMPANY Production Budget For the Year Ending December 31, 2020 Quarter 2 3 M 200000 250000 250000 Year Unit sales 300000 Add Finished goods 50000 50000 60000 44000 Totat required 250000 300000 310000 344000 X Less Ending inventory 40000 50000 50000 60000 210000 250000 260000 284000 1004000 Total Prepare the direct materials budget by quarters for 2020. OAK CREEK COMPANY Direct Materials Budget For the Year Ending December 31, 2020 Quarter 3 Year Units to be produced 210000 250000 260000 284000 Direct materials per unit 420000 Total kilograms required for production 500000 520000 568000 Add v 50000 Desired ending inventory 52000 63000 56800 50000 52000 56800 63000 Total materials required Less Beginning materials inventory 42000 50000 52000 56800 428000 502000 524800 574200 OAK CREEK COMPANY Direct Materials Budget For the Year Ending December 31, 2020 Quarter 2 3 Year Units to be produced 210000 250000 260000 284000 Direct materials per unit 2 2 x Total kilograms required for production 420000 500000 520000 568000 Add Desired ending Inventory 50000 52000 56800 63000 Total materials required 50000 52000 56800 63000 Less Beginning materials inventory 42000 50000 52000 56800 428000 Direct materials purchases 502000 524800 574200 10 10 10 10 Cost per kilogram 4280000 5020000 5249000 5742000 20290000 Total cost of direct materials purchases
