Sales. Sales for the year are expected to total 1,000,000 units uarterly sales are 21% 25% 27 and 27% respec ve y. The sa es price is expected to $38 per unit for the first three quarters and $45 per unit beginning in the fourth quarter. Sales in the first quarter of 2018 are expected to be 10% higher than the budgeted sales for the first quarter of 2017. Production. Management desires to maintain the ending finished goods inventories at 20% of the next quarters budgeted sa esvou me Direct materials. Each unit requires 2 pounds of raw materials at a cost of $11 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 2018 are 499,000 pounds Prepare the sales, production, and direct materials budgets by quarters for 2017. PARGO COMPANY Sales Budget Quarter 2 3 Yes Expected unit sales Unit selling price Total sales PARGO COMPANY Production Budget 2 Year