Pargo Company is preparing its master budget for 2020 . Relevant data pertaining to its sales, production, and direct materials budgets are as follows. Sales. Sales for the year are expected to total 1,500,000 units. Quarterly sales are 22%,23%,24%, and 31%, 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 2021 are expected to be 15% higher than the budgeted sales for the first quarter of 2020 . Production. Management desires to maintain the ending funished goods inventories at 25% of the next quarter's budgeted saies volume. Direct materials. Each unit requires 2 pounds of raw materials at a cost of $11 per pound. Management desires to maintain raw materials inventories at 10% of the next quarter's production requirements. Assume the production requirements for first quarter of 2021 are 495,000 pounds. PARGO COMPANY Sales Budget Quarter 1 2 3 Year $ $ $ $ PARGO COMPANY Production Budget Quarter 1 2 3 4