Williams Company produces handheld vacuums. The sales budget for the first four months of the year is presented below.

Company policy requires that ending inventories for each month be 20 percent of next month's sales. At the beginning of January, the beginning inventory of handheld vacuums met that policy.
Required:
Prepare a production budget for the first quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total.

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Unit Sales Dollar Sales January 90,000 $1,080,000 February 88,000 1,056,000 March 110,000 1,320,000 April 120,000 1,440,000