Sheffield Company is preparing its budgeted income statement for $2025.$ Relevant data

pertaining to its sales, production, and direct materials budgets are as follows.

Sales. Sales for the year are expected to total $1,260,000$ units. Quarterly sales

are $20\%,25\%,23\%,$ and $32\%,$ respectively. The unit selling price is expected to be $$40$ for the

first three quarters and $$47$ beginning in the fourth quarter. Sales in the first quarter of $2026$

are expected to be $10\%$ higher than the budgeted sales for the first quarter of $2025.$

Production. Management desires to maintain the ending finished goods inventories at $25\%$ of

the next quarter's budgeted sales volume.

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 $2026$

are $567,000$ pounds.

Sheffield budgets $0\mathrm{.}3$ hours of direct labor per unit, labor costs at $$12$ per hour, and

manufacturing overhead at $$18$ per direct labor hour. Its budgeted selling and administrative

expenses for $2025$ are $$7,560,000.$