Joshua Hill, Bates & Hill Fabricators’ production manager, has just received the company’s sales budget for the first quarter. 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 3,200 finished bricks at a cost of $49,280 in inventory at the beginning of the  year.

Required

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