1. Assume that ABC company produce and sales XX product. The Company's expected sales volume is 3,000 units in the first quarter with 500-unit increments for each following quarter i.e. from quarter I to quarter IV. Sales price: $60 per unit. All sales are made on credit and the company collects the credit sales as follows. 25% in the first quarter, 30% in the second quarter, 20% in the third and fourth quarter and 5% is assumed to be uncollectible and will be written off as uncollectable. The beginning inventory balance of the previous quarter shows a balance of 600 units. ABC Co. believes it can meet future sales needs with an ending inventory of 20% of next quarter's sales. ABC Company maintains an ending inventory of raw materials equal to 10% of the next quarter's production requirements. Assume that the beginning inventory balance of raw materials of the previous quarter shown 620 units. The manufacture of each unit requires 2 pounds of raw materials and the expected cost per pound is $4. All purchase is made on credit and the payment will be effected as 45% in the month of the purchase and 55% following the month of purchase. Assume that the desired ending direct materials amount is 1,020 pounds for the fourth quarter of 2011. At ABC Company, two hours of direct labor are required to produce each unit of finished goods. The anticipated hourly wage rate is $10. Required: based on the above information; I. Prepare the sales budget schedule​