Do It! Review 23-2 Porgo Company preparing its master budget for 2017. Relevant d ta pertanng to its sales, production, and direct metenais budgets are as follows. sales Sales er the year arg e ected to total 2 000 000 units warte sales ar 21% 27% 27% and 25% espectiv ly. The sales price is expected to be $42 per unit for the first three quarters and $44 per unit be inning in the fourth quarter sales in the first quarter of 2018 are expected to be 10% higher than the budgeted sales for the fist quarter of 2017 Production Management desires to maintain the ending finished goods inventories at 20% of the next quarter's budgeted sales volume. D et mater a e Each unit f quires 2 pounds or a materials at a cost of?11 per p und Management desires to maintain aw materials inventories at 10% of the next quarter's production e Prepare the sales, production, and direct moterials budgets by quarters for 2017 rements. Assume the production requirements first quarter of 2018 a e soo c o n PARGO COMPANY Sales Budget For the Year Ending December 31, 2017 Expected uni sales 420000 COD 50CoDC 20o00co Unt scling price Total saleS 7640000 Budget Expected Unit Seles Add Cesired Ending Direct Materiels Total Required Unts Less Beginning Finished Goods Inventory Required Production Units 540000 109000 108000 100000 Direct Materials Budget Direct Mateials Par Unit Total Materials Required Add: Desired Ending Totel Meterials Required Less Beginning Direct Materials Direct Materials Purchases Cost Per Pound Totel Cost of Direct Materials Purchases Diract Materias