The company provides some details for the period 2020 for preparing necessary budgets:

(a) Sales Details

The Company estimates that it can get maximum profits if it charges $ 200 (selling price) for one of its products. The marketing manager of the company had indicated that at a $ 200 selling price, the company would be able to sell 1,000 units in the first quarter of 2020. The company also expects that sales would go up by 100 units over previous quarter sales (like 1000, 1100 and so on.) The selling price is expected to be the same throughout the year.

(b) Inventory details

Alwyn Industries maintains at the end of each quarter an inventory of 10% of the next quarters sales. This allows the company to better meet its customers needs in case the customers experience a sudden surge in demand. The opening inventory for first quarter 2020 has been estimated to be 200 units

As a Management Accountant of Alwyn Industries, you are required to prepare

1. Sales Budget

ii. Production Budget for four quarters of the year 2020 (based on the information given above (in a and b)