Scannell, inc., sells tire rims at $160 per rim. its sales budget for the nine months ended september 30 follows. the director of marketing and the financial vice president agree that each quarter's finished goods and raw materials ending inventory should not be below 10% of sales for the following quarter. the marketing director expects sales of $320,000 during the fourth quarter. the january 1 inventory was 110 tire rims.

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Quarter Ended

Nine-Month

March 31

June 30

September 30

Total

Cash sales, 30% . . . . . .

$52,320

$75,360

$64,800

$192,480

Credits sales, 70% . . . . .

122,080

175,840

151,200

449,120

Total sales, 100% . . . . .

$174,400

$251,200

$216,000

$641,600

Direct materials	11 lbs. of rubber per tire at $4 per pound
Direct labor	0.5 hours per tire at $12 per hour
Variable MOH	$4 per DL hour
Fixed MOH	$4,050 per month, including $1,600 of depreciation
Variable selling	$3 per tire
Fixed selling	$10,000 per month, no depreciation

The director of marketing and the financial vice president agree that each quarter's finished goods and raw materials ending inventory should not be below 10% of sales for the following quarter. The marketing director expects sales of $320,000 during the fourth quarter. The January 1 inventory was 110 tire rims.

Requirement

1.	Prepare a production budget for each of the first three quarters of the year for ScannellScannell, Inc.