Production budget question
Glendo Farm Supply Co. manufactures and sells a pesticide called Snare. The following data is available for preparing budgets for snare for the first two quarters of 2013.
Sales Quarter 1 28,000 bags
Quarter 2 42,000 bags
Selling price $ 60.00 per bag
Desired inventory levels. Jan. 1 April 1 July 1
Snare Bags 8000 12000 18000
Gumm lbs 9000 10000 13000
Tarr lbs 14000 20000 25000
Direct materials each bag of 4 lbs of gumm at a cost of $4.00per lb. and 6 lbs. of tarr at $1.50 per lb.
Can anyone help?? Iam having difficulties in the production budget. Especially figuring the beginning finished goods unit.