S Company is preparing its master budget for 2019. Relevant data for its sales and production budgets are as follows: Sales for the year are expected to total 1.2 million units. Quarterly sales are expected to be 20%, 25%, 30% and 25%, respectively of the total sales. The sales prices is expected to be $50 per unit for the first three quarters and $55 per unit beginning in the fourth quarter. Sales for the first quarter of 2020 are expected to be 10% higher than the budgeted sales volume for the first quarter of 2019. Production management wants to keep ending finished goods inventories at 25% of next quarter's budgeted sales volume. 1) What is the purpose of a budget? 2) Prepare the sales budget and production budget by quarters per format below: Sales Budget Year Ending 2019 Q1 02 Q3 Q4 Year Expected unit sales Unit selling price Total sales Production budget Year Ending 2019 Q1 Q2 Q3 Q4 Year Expected unit sales Add: Desired ending finished goods units Total required units Less: Beginning finished goods units Units to be produced