Year 3 Quarter Year 2 Querter 44,000 Budgeted unit sales 20,000 35,000 50,000 30,000 40,000 $4 per unit Selling price per unit $65,000 Accounts receivable, beginning balance Sales collected in the quarter sales are made Sales collected in the quarter after sales are made Desired ending finished goods inventory is Finished goods inventory, beginning Raw materials required to produce one unit Desired ending inventory of raw materials is Raw materials inventory, beginning 25% of the budgeted unit sales of the next quarter 9,000 units 6 pounds 15% of the next quarter's production needs 23,000 pounds $0.75 per pound Please use for Raw material costs Tab 4 Raw materials purchases are paid 70% in the quarter the purchases are made 30% in the quarter following purchase Accounts payable for raw materials, beginning balan $81,500 Construct the sales budget Year 2 Quarter Year 3 Quarter Budgeted unit sales Selling price per unit Total sales Construct the schedufe of expected cash collections Year 2 Quarter Accounts receivable, beginning balance First-quarter sales Third-quarter sales Total cash collections Year 3 Quarter Construct the production budget Year 2 Quarter Year Budgeted unit sales Add desired ending finished goods inventory Total needs Less beginning inventory Required production Raw materials purchases budget Year 2 Quarter Year 3 Quarter Year Required production (units) Raw materials required to produce one unit 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 Cost of raw materials per pound Cost of raw materials to be purchased Construct the schedufe of expected cash payments Year 2 Quarter Accounts payable, beginning balance First-quarter purchases Total cash disbursements