Gills Goodies produces a range of self-serve desserts for resale at specialty food stores throughout the Eastern seaboard.

The company is developing a master budget over 4 quarters for this coming year from July 2016 to June 2017. Previous quarterly sales were 3840,1900,2650,3503. Unit sales are expected to increase by 25% and each unit is expected to sell $15.50.

Management of Gills Goodies prefers to maintain ending finished goods inventory equal to 10% of next quarters sales. Assume finished goods inventory at the end of the fourth quarter budget period is estimated to be 16,500 units. Using the sample budget formats, we have just worked through:

1. Prepare a sales budget for Gills Goodies,
2. Prepare a production budget for Gills Goodies.