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 1,000,000 units. Quarterly sales are 19%, 26%, 27%, and 28%, respectively. The sales price is expected to be $41 per unit for the first three quarters and $46 per unit beginning in the fourth quarter. Sales in the first quarter of 2021 are expected to be 10% higher than the budgeted sales for the first quarter of 2020.

Production. Management desires to maintain the ending finished goods inventories at 20% of the next quarters budgeted sales 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 quarters production requirements. Assume the production requirements for first quarter of 2021 are 501,000 pounds.

Prepare the sales, production, and direct materials budgets by quarters for 2020.

Please help me with the problems that are wrong in red. The first chart is for the Production Budget and the second chart is for the Direct Materials Budget. Thanks!

PARGO COMPANY Production Budget For the Year Ending December 31, 2020 - Quarter Year Expected Unit Sales Expected Unit Sales D 190,000 260,000 270,000 280,000 Add Desired Ending Finished Goods Units 52,000 54,000 56,000 52,250 Total Required Units 242,000 314,000 326,000 332,250 Less : Beginning Finished Goods Units Beginning Finished Goods Units C 38,000 52,000 54,000 56,000 Required Production Units 204,000 262,000 272,000 276,250 D 2,014,250 1,014,250 PARGO COMPANY Direct Materials Budget For the Year Ending December 31, 2020 - Quarter 1 Year Units to be produced 272,000 276,250 204,000 2 262,000 2 Direct Materials Per Unit 21 2 Total Pounds Required for Production 408,000 524,000 544,000 552,500 Add : Desired Ending Direct Materials (Pounds) 52,400 54,400 55,250 50,100 Total Materials Required 460,400 578,400 599,250 602,600 Less 4: Beginning Direct Materials (Pounds) 4 40,800 52,400 54,400 55,250 Direct Materials Purchases 419,600 526,000 544,850 5 547,350 419,600 11 526,000 11 544, 850 11 47,350 11 Cost Per Pound A $ $ $ $ Total Cost of Direct Materials Purchases 4,615,600 $ 5,786,000 5,993,350 6,028,850 22,423,800