1. Mr. Suncat has asked you to prepare a sales budget and production budget for the first quarter of the year using the following information:

   • Selling price of custom wedding cake: $800

   • Expecting to sell 200 wedding cakes in January and a 10% increase in each month for the next 6 months

   • The required ending inventory is 20% of next months sales.

Suncat Cake Shop

Sales Budget

For the Quarter Ended March 31, 2021

	January	February	March	Total
Expected Sales (Units)
Selling Price per Wedding Cake
Total Sales Revenue

Suncat Cake Shop

Production Budget

For the Quarter Ended March 31, 2021

	January	February	March
Expected Sales (Units)
Desired Ending Inventory (Units)
Total Required Units
Less: Beginning Inventory
Required Production