Pittman Inc. has gathered the following budgeting information for next year and has asked you to prepare their master budget. 0 Sales for the final quarter of the prior year total 2,300 units. Expected sales (in units) for the current year are: 2,070 (Quarter 1), 1,380 (Quarter 2), 1840 (Quarter 3), and 1,840 (Quarter 4). Sales for the first quarter of the following year total 2760 units. The selling price is $560 per unit in the first three quarters of the year, and $590 per unit in the final quarter. b. C d. e. Company policy calls for a given quarter's ending finished goods inventory to equal 50% of the next quarter's expected unit sales. The finished goods inventory at the end of the prior year is 1,035 units, which complies with the policy. The product's menufacturing cost is $183 per unit, including per unit costs of $104 for materials (8 lbs. at $13 per lb.), $54 for direct labor (3 hours $18 direct labor rate per hour), $21 for variable overhead, and $4 for fixed overhead. Annual fixed overhead consists, incurred evenly throughout the year, consist of depreciation on production equipment, $12,000; factory utilities. $15,000, and other factory overhead of $2,900 Company policy also calls for a given quarter's ending raw materials inventory to equal 30% of next quarter's expected materials needed for production. The prior year-end inventory is 4,140 lbs of materials, which complies with the policy. The company expects to have 6,524 lbs. of materials in inventory at year-end. The company has no work in process invectory at the end of any quarter. Sales representatives' commissions are 14% of sales and are paid in the quarter of the sales. The sales manager's quarterly salary will be $111,000 in the first three quarters of the year and $118,000 in the final quarter Quarterly general and administrative expenses include $47,000 administrative salaries, rent expense of $28,000 per quarter, insurance expense of $22.000 per quarter, straight- line depreciation of $22.000 per quarter, and 1% monthly interest on the $100,000 long-term note payable (12% annually) Income taxes will be assessed at 25%, and are paid in the quarter incurred. Sales Budget Budget Production Direct Ms Direct Lbr Factory OH Selleg Exp Admin Sp Budget Budget Budget Budget Budget Cost of Goods Sold Statement Income Requirement: Prepare the production budget for Pittman Inc. Company policy calls for a given quarter's ending finished goods inventory to equal 50% of the next quarter's expected unit sales. The finished goods inventory at the end of the prior year is 1,035 units, which complies with the policy. Expected sales (in units) for the current year are: 2,070 (Quarter 1), 1,380 (Quarter 2), 1,840 (Quarter 3), and 1,840 (Quarter 4). Sales for the first quarter of the following year total 2,760 units. Rudis of Dury Pittman c Production Budget For the year ended December 11, 2018 First O Second G The G Fourth G Total Direct get Show less