On January 1, 2017, the Marigold Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2017.

Sales units:		First quarter 5,800; second quarter 6,000; third quarter 7,300
Ending raw materials inventory:		40% of the next quarters production requirements
Ending finished goods inventory:		25% of the next quarters expected sales units
Third-quarter production:		7,840 units.

The ending raw materials and finished goods inventories at December 31, 2016, follow the same percentage relationships to production and sales that occur in 2017. 5 pounds of raw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost $5 per pound.

(a)

Prepare a production budget by quarters for the 6-month period ended June 30, 2017.

MARIGOLD COMPANY Production Budget June 30, 2017For the Six Months Ending June 30, 2017For the Quarter Ending June 30, 2017
	Quarter
		1		2		Year
Desired Ending Direct MaterialsExpected Unit SalesDirect Materials PurchasesDesired Ending Finished Goods UnitBeginning Finished Goods UnitTotal Materials RequiredBeginning Direct MaterialsDirect Materials Per UnitTotal Required UnitsRequired Production Units
AddLess: Desired Ending Direct MaterialsBeginning Finished Goods UnitDirect Materials Per UnitDesired Ending Finished Goods UnitExpected Unit SalesRequired Production UnitsBeginning Direct MaterialsDirect Materials PurchasesTotal Required UnitsTotal Materials Required
Desired Ending Finished Goods UnitDirect Materials PurchasesRequired Production UnitsBeginning Finished Goods UnitTotal Required UnitsTotal Materials RequiredDesired Ending Direct MaterialsBeginning Direct MaterialsDirect Materials Per UnitExpected Unit Sales
AddLess: Expected Unit SalesRequired Production UnitsTotal Required UnitsDirect Materials PurchasesBeginning Finished Goods UnitDirect Materials Per UnitTotal Materials RequiredDesired Ending Direct MaterialsBeginning Direct MaterialsDesired Ending Finished Goods Unit
Total Required UnitsDesired Ending Finished Goods UnitDirect Materials PurchasesBeginning Finished Goods UnitDirect Materials Per UnitDesired Ending Direct MaterialsExpected Unit SalesRequired Production UnitsTotal Materials RequiredBeginning Direct Materials