Pargo Company is preparing its master budget for 2017. Relevant data pertaining to its sales, production, and direct materials budgets are as follows. Sales. Sales for the year are expected to total 2,000,000 units. Quarterly sales are 18%, 26%, 23%, and 33%, respectively. The sales price is expected to be $ 38 per unit for the first three quarters and $ 45 per unit beginning in the fourth quarter. Sales in the first quarter of 2018 are expected to be 15% higher than the budgeted sales for the first quarter of 2017. Production. Management desires to maintain the ending finished goods inventories at 25% of the next quarters budgeted sales volume. Direct materials. Each unit requires 2 pounds of raw materials at a cost of $ 10 per pound. Management desires to maintain raw materials inventories at 10% of the next quarters production requirements. Assume the production requirements for first quarter of 2018 are 504,000 pounds. Prepare the sales, production, and direct materials budgets by quarters for 2017.

PARGO COMPANY Sales Budget For the Year Ending December 31, 2017December 31, 2017For the Quarter Ending December 31, 2017
	Quarter
	1	2	3	4	Year
Expected unit sales
Unit selling price	$	$	$	$
Total sales	$	$	$	$	$

PARGO COMPANY Production Budget For the Year Ending December 31, 2017December 31, 2017For the Quarter Ending December 31, 2017
	Quarter
	1		2		3		4		Year
Beginning Finished Goods InventoryBeginning Direct MaterialsDesired Ending Direct MaterialsDesired Ending Finished Goods InventoryDirect Materials Per UnitDirect Materials PurchasesExpected Unit SalesRequired Production UnitsTotal Materials RequiredTotal Required Units
AddLess: Beginning Finished Goods InventoryBeginning Direct MaterialsDesired Ending Direct MaterialsDesired Ending Finished Goods InventoryDirect Materials Per UnitDirect Materials PurchasesExpected Unit SalesRequired Production UnitsTotal Materials RequiredTotal Required Units
Beginning Finished Goods InventoryBeginning Direct MaterialsDesired Ending Direct MaterialsDesired Ending Finished Goods InventoryDirect Materials Per UnitDirect Materials PurchasesExpected Unit SalesRequired Production UnitsTotal Materials RequiredTotal Required Units
AddLess: Beginning Finished Goods InventoryBeginning Direct MaterialsDesired Ending Direct MaterialsDesired Ending Finished Goods InventoryDirect Materials Per UnitDirect Materials PurchasesExpected Unit SalesRequired Production UnitsTotal Materials RequiredTotal Required Units
Beginning Finished Goods InventoryBeginning Direct MaterialsDesired Ending Direct MaterialsDesired Ending Finished Goods InventoryDirect Materials Per UnitDirect Materials PurchasesExpected Unit SalesRequired Production UnitsTotal Materials RequiredTotal Required Units

PARGO COMPANY Direct Materials Budget For the Year Ending December 31, 2017December 31, 2017For the Quarter Ending December 31, 2017
		Quarter
		1		2		3		4		Year
Beginning Direct MaterialsCost Per PoundDesired Ending Direct MaterialsDirect Labor Cost Per HourDirect Labor Time Per UnitDirect Materials PurchasesDirect Materials Per UnitTotal Cost of Direct Materials PurchasesTotal Direct Labor CostTotal Materials RequiredTotal Pounds Required for ProductionTotal Required Direct Labor HoursUnits to be Produced
Beginning Direct MaterialsCost Per PoundDesired Ending Direct MaterialsDirect Labor Cost Per HourDirect Labor Time Per UnitDirect Materials PurchasesDirect Materials Per UnitTotal Cost of Direct Materials PurchasesTotal Direct Labor CostTotal Materials RequiredTotal Pounds Required for ProductionTotal Required Direct Labor HoursUnits to be Produced
Beginning Direct MaterialsCost Per PoundDesired Ending Direct MaterialsDirect Labor Cost Per HourDirect Labor Time Per UnitDirect Materials PurchasesDirect Materials Per UnitTotal Cost of Direct Materials PurchasesTotal Direct Labor CostTotal Materials RequiredTotal Pounds Required for ProductionTotal Required Direct Labor HoursUnits to be Produced
AddLess: Beginning Direct MaterialsCost Per PoundDesired Ending Direct MaterialsDirect Labor Cost Per HourDirect Labor Time Per UnitDirect Materials PurchasesDirect Materials Per UnitTotal Cost of Direct Materials PurchasesTotal Direct Labor CostTotal Materials RequiredTotal Pounds Required for ProductionTotal Required Direct Labor HoursUnits to be Produced
Beginning Direct MaterialsCost Per PoundDesired Ending Direct MaterialsDirect Labor Cost Per HourDirect Labor Time Per UnitDirect Materials PurchasesDirect Materials Per UnitTotal Cost of Direct Materials PurchasesTotal Direct Labor CostTotal Materials RequiredTotal Pounds Required for ProductionTotal Required Direct Labor HoursUnits to be Produced
AddLess: Beginning Direct MaterialsCost Per PoundDesired Ending Direct MaterialsDirect Labor Cost Per HourDirect Labor Time Per UnitDirect Materials PurchasesDirect Materials Per UnitTotal Cost of Direct Materials PurchasesTotal Direct Labor CostTotal Materials RequiredTotal Pounds Required for ProductionTotal Required Direct Labor HoursUnits to be Produced
Beginning Direct MaterialsCost Per PoundDesired Ending Direct MaterialsDirect Labor Cost Per HourDirect Labor Time Per UnitDirect Materials PurchasesDirect Materials Per UnitTotal Cost of Direct Materials PurchasesTotal Direct Labor CostTotal Materials RequiredTotal Pounds Required for ProductionTotal Required Direct Labor HoursUnits to be Produced
Beginning Direct MaterialsCost Per PoundDesired Ending Direct MaterialsDirect Labor Cost Per HourDirect Labor Time Per UnitDirect Materials PurchasesDirect Materials Per UnitTotal Cost of Direct Materials PurchasesTotal Direct Labor CostTotal Materials RequiredTotal Pounds Required for ProductionTotal Required Direct Labor HoursUnits to be Produced		$		$		$		$
Beginning Direct MaterialsCost Per PoundDesired Ending Direct MaterialsDirect Labor Cost Per HourDirect Labor Time Per UnitDirect Materials PurchasesDirect Materials Per UnitTotal Cost of Direct Materials PurchasesTotal Direct Labor CostTotal Materials RequiredTotal Pounds Required for ProductionTotal Required Direct Labor HoursUnits to be Produced		$		$		$		$		$