Joshua Hill, Bates & Hill Fabricators' production manager, has just received the company's sales budget for the first quarter (see Exercise 5-8). Company policy requires an ending finished goods inventory each month that will meet 20% of the following month's sales volume. Joshua plans to have 5,600 finished bricks at a cost of $49,000 in inventory at the beginning of the year.

Required
Prepare Bates & Hill's production budget for the first quarter.