Robinson Inc. has gathered the following budgeting information for next year and has asked you to prepare their master budget.
a.	Sales for the final quarter of the prior year total 2,500 units. Expected sales (in units) for the current year are: 2,250 (Quarter 1), 1,500 (Quarter 2), 2,000 (Quarter 3), and 2,000 (Quarter 4). Sales for the first quarter of the following year total 3,000 units. The selling price is $580 per unit in the first three quarters of the year, and $610 per unit in the final quarter.
b.	Company policy calls for a given quarters ending finished goods inventory to equal 70% of the next quarters expected unit sales. The finished goods inventory at the end of the prior year is 1,575 units, which complies with the policy. The products manufacturing cost is $215 per unit, including per unit costs of $90 for materials (6 lbs. at $15 per lb.), $88 for direct labor (4 hours $22 direct labor rate per hour), $25 for variable overhead, and $12 for fixed overhead. Annual fixed overhead consists, incurred evenly throughout the year, consist of depreciation on production equipment, $39,700; factory utilities, $49,700, and other factory overhead of $9,900.
c.	Company policy also calls for a given quarters ending raw materials inventory to equal 60% of next quarters expected materials needed for production. The prior year-end inventory is 6,210 lbs of materials, which complies with the policy. The company expects to have 10,800 lbs. of materials in inventory at year-end. The company has no work in process inventory at the end of any quarter.
d.	Sales representatives commissions are 18% of sales and are paid in the quarter of the sales. The sales managers quarterly salary will be $160,000 in the first three quarters of the year, and $170,000 in the final quarter.
e.	Quarterly general and administrative expenses include $68,000 administrative salaries, rent expense of $41,000 per quarter, insurance expense of $33,000 per quarter, straight-line depreciation of $33,000 per quarter, and 1% monthly interest on the $200,000 long-term note payable (12% annually).
f.	Income taxes will be assessed at 35%, and are paid in the quarter incurred.

Requirement:

Prepare the production budget for Robinson Inc.. Company policy calls for a given quarters ending finished goods inventory to equal 70% of the next quarters expected unit sales. The finished goods inventory at the end of the prior year is 1,575 units, which complies with the policy. Expected sales (in units) for the current year are: 2,250 (Quarter 1), 1,500 (Quarter 2), 2,000 (Quarter 3), and 2,000 (Quarter 4). Sales for the first quarter of the following year total 3,000 units.

Robinson Inc.
Production Budget
For the year ended December 31, 2018
	First Qtr.	Second Qtr.	Third Qtr.	Fourth Qtr.	Total
Next qtr's budgeted sales (units)				3,000
Ratio of inventory to future sales	70%	70%	70%	70%
Budgeted ending inventory (units)
Budgeted sales (units)	2,250	1,500	2,000	2,000
Required units of available production
Budgeted beginning inventory (units)	1,575	1,050	1,400	1,400
Units to be produced