The Sales Budget (in units) for Cauldron Ltd. for the first four months of 2021 is given below for propane heaters manufactured by Cauldron:

January 21,000

February 36,000

March 61,000

April 41,000

Cauldron Ltd.s inventory of finished goods at the end of each month should equal 20% of the nextmonths sales. However, on December 31, 2020, the finished goods inventory totaled only 4,000 units.

Required:

Prepare a production budget showing the quantity of units to be produced each month for January,February, March, and in total for the quarter. Use a tabular format as illustrated in the textbook.