Preparing a Production Budget

Information:

Budgeted units to be sold for each quarter of $2017$ : $1,000,1,200,1,500,$ and $2,000.$ Assume

that company policy requires $20$ percent of the next quarter's sales in ending inventory and

that beginning inventory of T$-$shirts for the first quarter of the year was $180$ units. Assume

also that sales for the first quarter of $2018$ are estimated at $1,000$ units.

Required:

Calculate the desired ending inventory in units for each quarter of the year. What is the

ending inventory in units for the year?

Prepare a production budget for each quarter and for the year.