Challenge Problem Chapter 22 #1.Pargo Company is preparing its master budget for 2017. Relevant data pertaining to its sales and production budgets are as follows. Sales. Sales for the year are expected to total 1,000,000 units. Quarterly sales are 20%, 25%, 25%, and 30%.. The sales price is expected to be $40 per unit for the first three quarters and $45 per unit beginning in the fourth quarter. Sales in the first quarter of 2018 are expected to be 20% higher than the budgeted sales for the first quarter of 2017. Production. Management desires to maintain the ending finished goods inventories at 25% of the next quarter's budgeted sales volume. Prepare the sales and production budgets by quarters for 2017. Sales Budget Expected unit sales Unit selling price Total sales Production Budget Quarter 2 3 Year Quarter Voar