CALCULATOR PRINTER VERSION Do It! Review 22-02 Ivanhoe 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 1,200,000 units. Quarterly sales are 18%, 25%, 23%, and 34%, respectively. The sales price is expected to be $38 per unit for the first three quarters and $47 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 25% of the next quarter's budgeted sales volume Direct materials. Each unit requires 2 pounds of raw materials at a cost of $12 per pound. Management desires to maintain raw materials inventories at 10% of the next quarter's production requirements. Assume the production requirements for first quarter of 2021 are 500,000 pounds. Prepare the sales, production, and direct materials budgets by quarters for 2020. IVANHOE COMPANY Sales Budget For the Year Ending December 31, 2020 Quarter 1 2 3 Year Expected Unit Sales Unit Selling Price Total Sales CALCULATOR PRINTER VERSI Quarter 1 2 3 Year Expected Unit Sales 216000 300000 276000 408000 1200000 38 38 38 47 Unit Selling Price $ Total Sales 8208000 11400000 10488000 19176000 49272000 IVANHOE COMPANY Production Budget Quarter 1 2 3 4 Year 216000 300000 276000 Expected Unit Sales 408000 Add Desired Ending Direct Materials (Pounds) Total Required Units Less Beginning Direct Materials (Pounds) Required Production Units IVANHOE COMPANY Direct Materials Budget Quarter Year CALCULATOR PRINTER VERSION BACK equired Production Units IVANHOE COMPANY Direct Materials Budget Quarter 2 3 Year > > SAVE FOR LATER Question Attempts: 0 of 1 used SUBMIT ANSWER MacBook