XYZ Corporation is preparing a master budget for 2018. Sales for the year are expected to total 1,000,000 units. Quarterly sales in units are 20%,25%,30%, and 25% respectively. The sales price is expected to be $50 per unit for the first 3 quarters and $55 per unit beginning in the fourth quarter. Sales in the first quarter of 2018 are expected to be 10% higher than the budgeted sales volume for the first quarter of 2017.

Cash collections from sales are 60% in the quarter of sale, 30% in the following quarter and 8% in the second quarter after sale.

For production purposes management desires to maintain ending finished goods inventories at 25% of the next quarters budgeted sales volume. Beginning finished goods on Jan 1 2018 are 60,000 units.

For production purposes two pounds of raw material are required for each finished product.

Management targets ending inventory of materials equal to 20% of next periods production needs of finished goods

Beginning materials inventory on January 1, 2018 was 10,000 pounds.

Prepare

A)10%- cash inflows schedule for the third quarter 2018

B) 13%-materials purchase budget in pounds for the first quarter 2018