their master budget. a. Sales for the final quarter of the prior year total 2,600 units. Expected sales (in units) for the current year are: 2,340 (Quarter 1), 1,560 (Quarter 2), 2,080 (Quarter 3), and 2,080 (Quarter 4). Sales for the first quarter of the following year total 3,120 units. The selling price is $590 per unit in the first three quarters of the year, and $620 per unit in the final quarter. b. Company policy calls for a given quarter's ending finished goods inventory to equal 50% of the next quarter's expected unit sales. The finished goods inventory at the end of the prior year is 1,170 units, which complies with the policy. The product's manufacturing cost is $175 per unit, including per unit costs of $96 for materials (8 lbs. at $12 per lb.), $60 for direct labor (3 hours $20 direct labor rate per hour), \$15 for variable overhead, and $4 for fixed overhead. Annual fixed overhead consists, incurred evenly throughout the year, consist of depreciation on production equipment, $13,500; factory utilities, $16,900, and other factory overhead of $3,400. c. Company policy also calls for a given quarter's ending raw materials inventory to equal 30% of next quarter's expected materials needed for production. The prior year-end inventory is 4,680 Ibs of materials, which complies with the policy. The company expects to have 7,488lbs. of materials in inventory at year-end. The company has no work in process inventory at the end of any quarter. d. Sales representatives' commissions are 12% of sales and are paid in the quarter of the sales. The sales manager's quarterly salary will be $113,000 in the first three quarters of the year, and $120,000 in the final quarter. e. Quarterly general and administrative expenses include $48,000 administrative salaries, rent expense of $29,000 per quarter, insurance expense of $23,000 per quarter, straightline depreciation of $23,000 per quarter, and 1% monthly interest on the $250,000 long-term note payable (12\% annually). f. Income taxes will be assessed at 20%, and are paid in the quarter incurred. Requirement: Prepare the Sales Budget for Shaw Inc.. Sales for the final quarter of the prior year total 2,600 units. Expected sales (in units) for the current year are: 2,340 (Quarter 1), 1,560 (Quarter 2), 2,080 (Quarter 3), and 2,080 (Quarter 4 ). Sales for the first quarter of the following year total 3,120 units. The selling price is $590 per unit in the first three quarters of the year, and $620 per unit in the final quarter