Novak Company is preparing its master budget for $2022.$ Relevant data pertaining to its sales, production, and direct materials budgets are as follows.

Sales: Sales for the year are xpected to total $1,300,000$ units. Quarterly sales are $25\%,25\%,25\%,$ and $25\%,$ respectively. The sales price is expected to be $$39$ per unit for the first three quarters and $$44$ per unit beginning in the fourth quarter. Sales in the first quarter of $2023$ are expected to be $10\%$ higher than the budgeted sales for the first quarter of $2022.$

Production: Management desires to maintain the ending finished goods inventories at $20\%$ of the next quarter's budgeted sales volume.

Direct materials: Each unit requires $2$ kg of raw materials at a cost of $$10$ per kilogram. Management desires to maintain raw materials inventories at $10\%$ of the next quarter's production requirements. Assume the production requirements for the first quarter of $2023$ are $580\mathrm{.}000$ kg$.$

$($a$1)$

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