Pargo Company is preparing its master budget for 2020. Relevant data pertaining to its sales, producion, and direct materials budgets are as follows. Sales, Sales for the year are expected to total 1,900,000 units. Quarterly sales are 22%26% 27%, and 25%, respectively. The sales price is expected to be $41 per unit for the first three quarters and $44 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 20% of the next quarter's 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 quarter's production requirements. Assume the production requirements for first quarter of 2021 are 495.000 pounds. Prepare the sales, production, and direct materials budgets by quarters for 2020. PARGO COMPANY Sales Budget December 31, 2020 . varter PARGO COMPANY Production Budget Quarter 2 Total Required Units 1000 Add: Desired Endine Finished Goods Units Total Materials Required STAD Less Beginning Direct Materials (Poundo) 131.200 Total Required Units PARGO COMPANY Direct Materials Budget For the Year Ending December 31, 2020 Quarter PARGO COMPANY Direct Materials Budget For the Year End December 31, 2020 Quarter 2 1 Units to be Produced 433200 Direct Materials. Per Unit Total Materials Required 366.00 Add : : Desired Ending Direct Materials (Pounds) : 99.560 Total Materials Required 86,640 99.560 879,320 997.120 Less :: Beginning Direct Materials (Pounds) 10 10 Direct Materials Purchases $ 8.793.200 $ 9.971.200 Cost Per Pound $ $ 12662.370 $ 11.158332 Total Cost of Direct Materials Purchases PARGO COMPANY Direct Materials Budget For the Year Ending December 31, 2020 Quarter 1 2 433200 3 497500 366.400 995.000 10101.00 99.500 101 080 86,640 99,560 101.080 879,320 997.120 1.0049:40 906552 10 10 10 10 8.793,200 s 9.971,200 s 10.049.480 $ 9065520 $ $ $ 12 662 370 $ 11.857 228 11545 233 11.158.332 e Textbook and Media Attempts: 1 of 2 used Save for Later PARGO COMPANY Direct Materials Budget For the Year Ending December 31, 2020 Quarter 2 3 497300 Year 505.00 995.00 1010 00 101030 95228 2.500 99.560 101.080 95.228 997.120 1,004, 948 906 552 10 10 10 $ $ 10.049,480 9.971.200 9.065.520 11.545 232 $ 11.857 228 $ 12.662 370 $