On January 1,2021, the Chinlee Company budget committee reached agreement on the following data for the six months ending June 30, 2021: 1. Sales units : First quarter 5,000: second quarter 6,200: third quarter 7,000
2. Ending raw materials inventory : 40% of the next quarter’s production requirements
3. Ending finished goods inventory : 25% of the next quarter’s expected sales units
4. Third quarter production : 7,300 units
The ending raw materials and finished goods inventories at December 31, 2020, had the same percentages for production and sales that are budgeted for 2020. 3 kilograms of raw materials are needed to make each unit of finished goods. Raw materials purchased are expected to cost $4 per kilogram.
Prepare a production budget by quarters for the six-month period ended June 30,2021.