Johans Ltd has budgeted the following unit sales:

2017

2018

Quarter

Units

Quarter

Units

1

80,000

1

70000

2

40,000

3

60,000

4

100,000

The finished goods inventory on hand on 31 December 2017 was 8,000 units. It is the company's policy to maintain a finished goods inventory at the end of each quarter equal to 5% of the next quarter's anticipated sales.

Required:

Prepare production budget for 2018. Write answer in the table below. Show workings.