Palermo Company estimates that unit sales will be 10,300 in quarter 1; 12,600 in quarter 2; 14,600 in quarter 3; and 18,300 in quarter 4. Management desires to have an ending finished goods inventory equal to 25% of the next quarter's expected unit sales. Prepare a production budget by quarters for the first 6 months of 2014. Brief Exercise 21-4 Perine Company has 5,352 pounds of raw materials in its December 31, 2013, ending inventory. Required production for January and February of 2014 are 4,460 and 5,820 units, respectively. 4 pounds of raw materials are needed for each unit, and the estimated cost per pound s $8. Management desires an ending inventory equal to 30% of next month's material requirement. Prepare the direct materials budget for January. For Mize Company, units to be produced are 5,340 in quarter 1 and 6,150 in quarter 2. It takes 1.5 hours to make a finished unit, and the expected hourly wage rate is $16 per hour. Prepare a direct labor budget by quarters for the 6 months ending June 30, 2014