oON OAR WN = A B ce D E Budget Assumptions for Santa Fe Division Projected/Budgeted sales in unit for the fourth Quarter of 20Y3 200,00u The percentage of sales increase from one quarter to next quarter 15%| Desired Ending Inventory is 20% of the budgeted sales units of the same quarter 20% | plus 3,000 units 3,000 Budgeted Ending inventory units for the fourth quarter of 20Y3 43,00L | Sales Budget for the 20Y4 | 1st quarter 2nd quarter 3rd quarter 4th quarter Sales unit 230,000.00 264,500.00 304,175.00 349,802.00 Answer check (make sure to use roundup formula) Purchase Budget for the 20Y4 Correct 1st quarter Correct 2nd quarter | Correct 3rd quarter Correct Ath quarter 20Y4 budget Budgeted Sales unit 43,000.00 Plus Desired Ending Inventory Equal to Total need Less Beginning inventory Equal to Budgeted Purchase Answer check (Make sure to use roundup formula to compute desired ending inventory) Part B. Preparation of sales and puchase budget: You are in the process of preparing budget for 204 for Santa Fe Division. - Based on the forecasts of the Sales Department, the sales are expected to increase by 15 per cent in each quarter. - The company's policy for computing the desired ending inventory in each quarter is: 20 per cent of the budgeted sales units of the same quarter plus 3,000 units. You are required to: 1. Complete Budget assumption box in the Part B Data file Budget worksheet. (Follow the instructions in the notes/comment box in cells B2, B3 and B6.) 2. Prepare a Sales budget and Purchase budget for Santa Fe for 20Y3 (Use appropriate formula. Use Roundup function to calculate the number of units as a full unit in each row of the budget tables). Check figures: Total budget sales: 1, 148,477 units Total budgeted purchase: 1, 178,438 units