Fuqua Company's sales budget projects unit sales of part $198Z$ of $10,000$ units in January, $12,000$ units in February, and $13,000$ units

in March. Each unit of part $198Z$ requires $4$ pounds of materials, which cost $$2$ per pound. Fuqua Company desires its ending raw

materials inventory to equal $40\%$ of the next month's production requirements, and its ending finished goods inventory to equal $20\%$

of the next month's expected unit sales. These goals were met at December $31,2021.$

$($a$)$

Your answer is partially correct.

Prepare a production budget for January and February $2022.$

FUQUA COMPANY

Production Budget

Expected Unit Sales

February

Desired Ending Finished Goods Inventory

Total Required Units

Beginning Finished Goods Inventory