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A company manufactures and sells a seasonal product that has peak sales in the third quarter. The following information concerns operations for Year 2 and for the first two quarters of Year 3: (a). The company's single product sells for $8 per unit. Budgeted unit sales for the next six quarters are as follows (all sales are on credit): Year 3 Quarter Year 2 Quarter 2 3 1 4 1 2 Budgeted unit sales 40,000 50,000 100,000 50,000 70,000 80,000 (b). Sales are collected in the following pattern: 75% in the quarter the sales are made, and the remaining 25% in the following quarter. On January 1, Year 2, the company's balance sheet showed $65,000 in accounts receivable, all of which will be collected in the first quarter of the year. Bad debts are negligible and can be ignored. (c). Required production units for the next five quarters are as follows: Year 2 Quarter Year 3 Quarter 1 1 2 3 4 Required production units 42,000 65,000 85,000 56,000 73,000 (d). 6 pounds of raw materials are required to complete one unit of product. The company requires ending raw materials inventory at the end of each quarter equal to 10% of the following quarter's production needs. On December 31, Year 1, the company had 23,000 pounds of raw materials on hand. Beginning raw materials inventory of each quarter equal to 10% of the current quarter's production needs. (e). The raw material costs $0.85 per pound. Raw material purchases are paid for in the following pattern: 60% paid in the quarter the purchases are made, and the remaining 40% paid in the following quarter. On January 1, Year 2, the company's balance sheet showed $81,500 in accounts payable for raw material purchases, all of which will be paid for in the first quarter of the year. Instructions: Prepare the direct materials budget and a schedule of expected cash payments for purchases of materials for the year 2, showing both quarterly (4 quarter) and total figures

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