budgets below on the exam. Master Budgets: 1. The corn of Sweet Corn, Inc., is harvested throughout June, July, August, and September, and turned into production in each of those months. The whole operation is done by October 1 each year. The following is the company's quarterly sales forecast, based on the previous year's sales and sells the frozen bags at $4 per bag, a price that allows for a small profit per unit. Prepare the sales budget by quarters for the year ending December 31, 2022. Sales Forecast Budgeted sales volume in bags. Budgeted selling price Budgeted sales Jul-22 Aug-22 Sept.-22 Quarter 3,500 3,450 3,590 10,540 2. Create the quarterly production budget, Sweet Corn starts with the budgeted sales volume from the sales forecast, which becomes the first line of the production budget. The company has a policy of keeping 10% of the net month's planned sales on hand in ending FG inventory. Ending FG inventory for one month becomes next month's beginning FG Inventory. Determine the budgeted units to be produced each month and the quarter ending. Production Budget Jul-22 Aug-22 Sept.-22 Quarter Budgeted sales volume 3,500 3,450 3,590 10,540 Plus: Target ending FG Inventory (in bags) Total units needed Less: Beginning FG Inventory (in bags) 350 Budgeted units to be produced