Lowell Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2020. January March April May Estimated unit sales 10,500 $50.30 February 11,200 $47.00 Sales price per unit Direct labor hours per unit Wage per direct labor hour 8,200 $47.00 1.6 8,800 $47.00 1.6 9,000 $47.00 1.6 2.2 2.2 $8 $8 $8 $9 $9 Lowell has a labor contract that calls for a wage increase to $9 per hour on April 1. New labor-saving machinery has been installed and will be fully operational by March 1. Lowell expects to begin the year with 18,340 frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following month's sales, plus 70% of the second following month's sales. Prepare a production budget for Lowell Company by month and for the first quarter of the year. LOWELL COMPANY Production Budget For the Quarter Ending March 31, 2020 v Jan Feb Mar Total Expected Unit Sales 10500 11200 8200 Add v Desired Ending Finished Goods Unit v 16940 14360 15100 Total Required Units 27440 25560 23300 > Less V Beginning Finished Goods Unit 18340 16940 14360