Lugo Company manufactures drinking glasses. One unit is a package of eight glasses, which sells for $$25.$ Lugo projects sales for April will be $4,500$ packages, with sales increasing by $150$ packages per month for May, June, and July. On April $1,$ Lugo has $350$ packages on hand but desires to maintain an ending inventory of $10\%$ of the next month's sales. Prepare a sales budget and a production budget for Lugo for April, May, and June.

Begin by preparing a sales budget for April, May, and June.

$\backslash$table$[[\backslash$table$[[$Lugo Company$],[$Sales Budget$]]],[$April$,$ May, and June$],[,,$April,,May,,June,,Total$],[$Budgeted packages to be sold,,$4,500,,4,650,,4,800||,,13,950],[$Sales price per package,,$25,$$$,25,$$$,25,$$$,25],[$Total sales,,$112,500,,116,250,,120,000,$$${?}_{{?}_{?}},348,750]]$

Now prepare a production budget for April, May, and June.

$\backslash$table$[[$Lugo Company$],[$Production Budget$],[$April$,$ May, and June$],[$Less:$],[$Budgeted packages to be produced$]]$M