Sunland Company's sales budget projects unit sales of part $198$Z of $12,000$ units in January, $13,600$ units in February,

and $16,400$ units in March. Each unit of part $198Z$ requires $4$ pounds of materials, which cost $$2$ per pound. Sunland

Company desires its ending raw materials inventory to equal $40\%$ of the next month's production requirements, and its

ending finished goods inventory to equal $20\%$ of the next month's expected unit sales. These goals were met at

December $31,2021.$

$($a$)$

Prepare a production budget for January and February $2022.$

SUNLAND COMPANY

Production Budget

January