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Santa Fe Corporation produces and sells a seasoned product that has peak sales in the third quarter. The following information concerns operations for Year 3 the coming year and for the first two quarters of Year 4.

The companys single product sells for $16 per unit. Budgeted unit sales for the next six quarters are as follows (all sales are on credit):

			Year 3 Quarter				Year 4 Quarter
			1	2	3	4	5	6
Budgeted Sales in units			160,000	120,000	200,000	100,000	140,000	160,000

Sales are collected in the following pattern: 75 percent in the quarter the sales are made, and the remaining 25 percent in the following quarter. On January 1 Year 3, the companys balance sheet showed $130,000 in accounts receivable, all of which will be collected in the first quarter of the year. Bad debts are negligible and can be ignored.

The company desires an ending finished goods inventory at the end of each quarter equal to 30 percent of the budgeted unit sales for the next quarter. On December 31, Year 2, the company had 24,000 units on hand.

Ten pounds of raw materials are required to complete one unit of product. The company requires ending inventory at the end of each quarter equal to 10 percent of the following quarters production needs. On December 31, Year 2, the company had 46,000 pounds of raw materials on hand.

The raw materials costs $1.60 per pound. Raw materials purchases are paid for in the following pattern: 60 percent paid in the quarter the purchases are made, and the remaining 40 percent paid in the following quarter. On January 1, Year 3, the companys balance sheet showed $163,000 in accounts payable for raw materials purchases, all of which will be paid for in the first quarter of the year.

Required:

On the excel worksheet provided, prepare the following budgets and schedules for the year, showing both quarterly and total figures.

A sales budget and a schedule of expected cash collections.

A production budget.

A direct materials budget and a schedule of expected cash payments for purchase of materials.

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