Now that you have completed these tables, Ratchet Now is ready to do its ending inventory and cost of goods sold budget using the information you have developed in Exercises 5 through 8. Opening inventory is valued at $100,000. Develop these budgets.

Data from Exercise 5

Ratchet Now makes a ratchet set that is compact for ease of use and storage. It predicts it will sell 100,000 units in Quarter 1,125,000 units in Quarter 2,140,000 units in Quarter 3, and 150,000 units in Quarter 4. It expects that in Quarter 1 of the following year, it will also sell 150,000 units. Opening inventory is 20,000 units. The company wants to retain 20% of the next quarter’s sales on hand as ending inventory. Using this information, develop a production budget for Ratchet Now.