Total DL cost

Total Material Require

Unit to be produced

Dl time per unit

Desired ending DM

Cost per pound

Total pound rewuired for production

Beg DM

DM purchase

Total Cost of DM purchase

DM per unit

Total require DL hours

Dl cost per hour

Pargo Company is preparing its master budget for 2017. Relevant data pertaining to its sales, production, and direct materials budgets are as follows. Sales. Sales for the year are expected to total 1,200,000 units. Quarterly sales are 18%, 25%, 23%, and 34%, respectively. The sales price is expected to be $38 per unit for the first three quarters and unit beginning in the fourth quarter. Sales in the first quarter of 2018 are expected to be 10% higher than the budgeted sales for the first quarter of 2017. 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 2018 are 500,000 pounds. Prepare the sales, production, and direct materials budgets by quarters for 2017. PARGO COMPANY Sales Budget Quarter Year Expected unit sales Unit selling price Total sales PARGO COMPANY Production Budget Quarter Year