Pargo Company is preparing its master budget for 2022. 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 20%, 25%, 25%, and 30%, respectively. The unit selling price is expected to be $40 for the first three quarters and $45 beginning in the fourth quarter. Sales in the first quarter of 2023 are expected to be 20% higher than the budgeted sales for the first quarter of 2022.

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 2023 are 450,000 pounds.

Prepare the sales, production, and direct materials budgets by quarters for 2022? - CALCULATE BUDGETED TOTAL UNIT COST AND PREPARE BUDGETED INCOME STATEMENT?

PARGO COMPANY Sales Budget For the Year Ending December 31 ( $ 1a Quarter 1 2 3 4 Year Expected unit sales 200000 250000 250000 300000 1000000 Unit selling price 40 40 40 45 Total sales 8000000 10000000 10000000 13500000 41500000 PARGO COMPANY Production Budget For the Year Ending December 31, u Quarter 1 2 3 4 Year Expected unit sales 200000 250000 250000 300000 + Add: Desire Ending finished Goods Inventory 52500 62500 75000 60000 = Total Required Units 262500 312500 325000 360000 Less: Beginning Finished Goods Inventory 50000 52500 52500 75000 = Required Production units 212500 250000 262500 285000 1010000 PARGO COMPANY Direct Materials Budget For the Year Ending December Quarter 1 2 3 4 Year Units to be produced 212500 250000 262500 285000 x Direct Materials per unit 2 =Total pounds Required for production 425000 500000 525000 570000 + Add: Desire Ending Direct Materials 50000 52500 57000 45000 = Total Material Required 475000 552500 582000 615000 Less: Beginning Direct Materials 42500 50000 52500 57000 =Direct Material Purchases 432500 502500 529500 558000 Cost per Pound 12 12 12 12 Total cost of Direct Materials Purchases 5190000 6030000 6354000 6696000 24270000