Sales Budget

Managerial accountants and the budget committee for the FMI corporation is meeting in November to prepare the 2019 budget. Your task, as a member of the budget committee, is to prepare the 2019 budget given the following data:
Sales: The company expects to sell 35% more units in 2019 than in each quarter of 2018. During 2018, sales were Q1: 50,000; Q2: 30,000; Q3: 60,000 and Q4: 50,000 units. The selling price per unit is expected to be $50 in the first three quarters, but only $40 per unit in Q4 because substantial competition is expected beginning in Q4 of 2019. Sales are expected to 40,00 units in Q1 of 2020.
The company wants to maintain ending finished goods inventory at 25% of the next quarter’s expected unit sales. Assume that this will hold to start Q1 of 2019 so that beginning finished goods inventory is (.25) (50,000 )(1.35) = (.25)(67,500) = 16,875 units.

Prepare a sales budget by quarter for the year 2019.