Monty Company produces and sells automobile batteries, the heavy-duty HD-240. The 2017 sales forecast is as follows.

Quarter		HD-240
1		5,500
2		7,140
3		8,200
4		10,270

The January 1, 2017, inventory of HD-240 is 2,200 units. Management desires an ending inventory each quarter equal to 40% of the next quarters sales. Sales in the first quarter of 2018 are expected to be 25% higher than sales in the same quarter in 2017. Prepare quarterly production budgets for each quarter and in total for 2017.

MONTY COMPANY Production Budget For the Year Ending December 31, 2017For the Month Ended December 31, 2017For the Quarter Ended December 31, 2017
Product HD-240
	Quarter
		1		2		3		4		Year
Direct Materials Per UnitDesired Ending Finished Goods UnitTotal Required UnitsRequired Production UnitsDesired Ending Direct MaterialsDirect Materials PurchasesBeginning Direct MaterialsBeginning Finished Goods UnitExpected Unit SalesTotal Materials Required
AddLess : Total Materials RequiredDesired Ending Finished Goods UnitBeginning Finished Goods UnitExpected Unit SalesDirect Materials Per UnitTotal Required UnitsDirect Materials PurchasesBeginning Direct MaterialsRequired Production UnitsDesired Ending Direct Materials
Desired Ending Finished Goods UnitTotal Materials RequiredExpected Unit SalesDirect Materials Per UnitTotal Required UnitsDesired Ending Direct MaterialsBeginning Finished Goods UnitDirect Materials PurchasesRequired Production UnitsBeginning Direct Materials
AddLess : Direct Materials PurchasesBeginning Finished Goods UnitTotal Materials RequiredExpected Unit SalesBeginning Direct MaterialsDesired Ending Direct MaterialsRequired Production UnitsDirect Materials Per UnitTotal Required UnitsDesired Ending Finished Goods Unit
Beginning Finished Goods UnitDesired Ending Finished Goods UnitTotal Required UnitsBeginning Direct MaterialsDesired Ending Direct MaterialsDirect Materials Per UnitDirect Materials PurchasesTotal Materials RequiredExpected Unit SalesRequired Production Units