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Mac Fabric is a textile manufacturing company in Southern Tasmania. Every year the company prepares a complete set of budgets. The budgeting process begins with

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Mac Fabric is a textile manufacturing company in Southern Tasmania. Every year the company prepares a complete set of budgets. The budgeting process begins with information supplied by the Sales and Marketing Department. The balance in inventory at the beginning of the year was 350 000 square metres of fabric. The company plans to have inventory at the end of the month equal to 40% of the following month's sales. The Sales and Marketing Department has predicted unit sales (in square metres of fabric) to be as follows: January 1 480 000 m2 February 2 120 000 m2 March 1 300 000 m2 April 2 400 000 m2 Required: Prepare a Production Budget for Mac Fabric for the first three months of the year and a total for the quarter ending March

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