Chapter 7 Case 1 Create a spreadsheet to complete the following budgets. a. The sales price for each unit is $18. The estimated sales for the first five months of the vear are as follows: prepare the sales budget for the tirst nuarten. b. The production manogec has determined that 25% of the tolowing month budgeted sales should be kept on thand. The onding inventer at pecember 31 was 2000 units c. Each unit requires 2 pounds of material that cost $4.00 per pound. Management wants to keep an extra 30% of the following month's production needs in ending inventory each month. Ending materials inventory at December 31 is 6,000 pounds. Prepare the direct materials budget and purchases budget for the first quarter. d. Past sales have been 25% cash and 75% credit. Using the information from the sales budget prepared in part a, create a Forecasted Cash and Credit sales budget. The company has determined that 40% of the credit sales are collected in the month of the sale, and 60% of the credit sales are collected in the month after the sale. The credit sales for naramhar wara $210.000. e. Purchases are paid 60% in the month of purchase and 40% in the following month. The credit purchases for December were $94,000 Using the purchases budget prepared in part c, create the cash disbursement schedule for