Current Attempt in Progress

Pharoah Company is preparing its master budget for $2022.$ Relevant data pertaining to its sales, production, and direct materials

budgets are as follows.

Sales. Sales for the year are expected to total $1,120,000$ units. Quarterly sales are $20\%,25\%,25\%,$ and $30\%,$ respectively. The sales

price is expected to be $$40$ per unit for the first three quarters and $$45$ per unit beginning in the fourth quarter. Sales in the first

quarter of $2023$ are expected to be $20\%$ higher than the budgeted sales for the first quarter of $2022.$

Production. Management desires to maintain the ending finished goods inventories at $25\%$ of the next quarter's budgeted sales

volume.

Direct materials. Each unit requires $2$ pounds of raw materials at a cost of $$12$ per pound. Management desires to maintain raw

materials inventories at $10\%$ of the next quarter's production requirements. Assume the production requirements for first quarter

of $2023$ are $504,000$ pounds.

$($a$)$

Prepare the sales budgets by quarters for $2022.$