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 1,400,000 units. Quarterly sales are 21\%, 23\%, 23\%, and 33\%, respectively. The sales price is expected to be $38 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 15\% higher than the budgeted sales for the first quarter of 2020. Production. Management desires to maintain the ending finished goods inventories at 25% of the next quarter's budgeted sales volume. Direct materials. Each unit requires 2 pounds of raw materials at a cost of $12 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 497,000 pounds. Prepare the sales, production, and direct materials budgets by quarters for 2020. PARGO COMPANY Production Budget For the Ouarter Ending December 31. 2020 Quarter \begin{tabular}{|c|c|c|c|} \hline 1 & 2 & 3 & 4 \\ \hline 330000 & 345000 & 360000 & 465000 \\ \hline 86250 & 90000 & 116250 & 94875 \\ \hline 416250 & 435000 & 476250 & 559875 \\ \hline 82500 & 86250 & 90000 & 116250 \\ \hline 333750 & 348750 & 386250 & 443625 \\ \hline \end{tabular} Quarter \begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline & \multicolumn{2}{|c|}{2} & \multicolumn{2}{|c|}{3} & \multicolumn{2}{|c|}{4} & & Year \\ \hline 333750 & & 348750 & & 386250 & & 443625 & & \\ \hline 2 & & 2 & & 2 & & 2 & & \\ \hline 667500 & & 697500 & & 772500 & & 887250 & & \\ \hline 69750 & & 77250 & & 88725 & & 49500 & & \\ \hline 737250 & & 774750 & & 861225 & & 936750 & & \\ \hline 66750 & & 69750 & & 77250 & & 88725 & & \\ \hline 670500 & & 705000 & & 783975 & & 848025 & & \\ \hline 11 & $ & 11 & $ & 11 & $ & 11 & & \\ \hline 7375500 & $ & 7755000 & $ & 8623725 & $ & 9328275 & $ & 3 \\ \hline \end{tabular}