Manoa Inc. has gathered the following budgeting information for next year and has asked you to prepare their master budget Sales for the final quarter of the prior year total 2,200 units. Expected sales (in units) for the current year are: 1,980 (Quarter 1), 1,320 (Quarter 2), 1,760 (Quarter 3), and 1,760 (Quarter 4). Sales for the first quarter of the following year total 2,640 units. The selling price is $550 per unit in the first three quarters of the year, and $580 per unit in the final quarter a. 3 b. Company policy calls for a given quarter's ending finished goods inventory to equal 70% of the next quarter's expected unit sales. The finished goods inventory at the end of the prior year is 1,386 units, which complies with the policy. The product's manufacturing cost is $199 per unit, including per unit costs of $72 for materials (6 lbs. at $12 per lb.), $96 for direct labor (4 hours x $24 direct labor rate per hour), $19 for variable overhead, and $12 for fixed overhead. Annual fixed overhead consists, incurred evenly throughout the year, consist of depreciation orn production equipment, $35,000; factory utilities, $43,700, and other factory overhead of $8,684. Company policy also calls for a given quarter's ending raw materials inventory to equal 50% of next quarter's expected materials needed for production. The prior year-end inventory is 4,554 lbs of materials, which complies with the policy. The company expects to have 7,920 lbs. of materials in inventory at year-end. The company has no work in process inventory at the end of any quarter C