converting matrix data into a table

I been trying to solicit a robust working solution to this problem without complete success. I revised the attached file for better understanding.

In summary: I have a Matrixed data on sheet 1 that needs to be transfered into a table very much as shown in sheet 2.

notes to keep in mind:
1. the table utilizes grouping
2. I CAN'T have any empty rows in the table.
3. i CAN start off by manually inserting the exact number of blank rows needed for each Box in the table.
4. the data in sheet 1 is dynamic; part numbers, qnty and the number of parts in each box can change.
5, data in sheet two is mostly the formula generated result.
5. i would prefer to use formulas to drag down the columns.
6. I am not an Excel expert by any means; you will have to hand me the answer on a silver plate if you may ;otherwise i will be lost. I can however tweek the formula to work for the other columns; i think i can manage without too much trouble.

if you can successfuly help i would very much be grateful to you.