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

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Pharoah Company is preparing its master budget for 2022.Relevant data pertaining to its sales, production, and directmaterials 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 salesprice is expected to be $40 per unit for the first three quartersand $45 per unit beginning in the fourth quarter. Sales in thefirst quarter of 2023 are expected to be 20% higher than thebudgeted sales for the first quarter of 2022.
Production: Management desires to maintain the ending finishedgoods inventories at 25% of the next quarter’s budgeted salesvolume.
Direct materials: Each unit requires 2 pounds of raw materialsat a cost of $12 per pound. Management desires to maintain rawmaterials inventories at 10% of the next quarter’s productionrequirements. Assume the production requirements for first quarterof 2023 are 504,000 pounds.
Prepare the production budgets by quarters for 2022.