I NEED HELP WITH THE RED ONLY THANKS.

Your answer is partially correct. Try again. Pargo Company is preparing its master budget for 2017. Relevant data pertaining to its sales, production, and direct materials budgets are as follows. sales. sales for the year are expected to total 1,800,000 units. Quartery sales are 18%, 25%, 25%, and 32%, respectively. The sales price Is expected to be $39 per unit for the first three quarters and $43 per unit beginning in the fourth quarter. Sales in the first quarter of 2018 are expected to be 15% higher than the budgeted sales for the first quarter or 2017 Production, Management desires to maintain the ending finished goods inventories at 25% of the next quarter's budgeted sales volume. Direct materans. Each unit requires 2 pounds of raw materials at a cost of $10 per pound. Management des res to maintain raw materials inventories at 10% ofthe next quarter's production requirements. Assume the production requirements for first quarter of 2018 are 509,000 pounds. Prepare the sales, production, and direct materials budgets by quarters for 2017 PARGO OOMPANY Sales Budget For the Year Ending December 31, 2017 arter Year Expected unit sales 324000 450000 450000 576000 1800000 39 39 39 Unit selling price Total sales 12636000 17550000 17550000 24768000 PARGO Production Budget For the Year Ending December 31, 2017 Quarter 3 Year Expected Unit Sales Add . Desired Ending Finished Goods Inventory V Total Required Units Less V. Beginning Finished Goods Inventory Required Production Units 324000 450000 450000 576000 112500 112500 144000 93150 436500 562500 594000 669150 81000 112500 112500 144000 355500 450000 481500 525150 1812150 PARGO COMPANY Direct Materials Budget For the Year Ending December 31 2017 Quarter 3 4 Year Units to be Produced 355500 450000 481500 525150 Direct Materials Per Unit 2 Total Pounds Required for Production 900000 1050300 711000 963000 Add Desired Ending Direct Materials 518000 105030 90000 96300 Total Materials Required 1102100 801000 996300 1068030 Less L | Beginning Direct Materials 729900 906300 971730 997070 Add . Desired Ending Direct Materials 518000 96300 105030 90000 Total Materials Required 1102100 996300 801000 1068030 Less V. Beginning Direct Materials 729900 906300 971730 997070 Direct Materials Purchases 997070 729900 906300 971730 10 10 10 10 Cost Per Pound 9970700 36050000 7299000 9063000 9717300 Total Cost of Direct Materials Purchases