1. Karam Inc. has compiled the following data in order to put together their first quarter operating budget for 2011: Sales (units) January 35,000 February 31,000 March 38,000 April 29,000 Additional information: Karam sells each unit for $95. Company policy is to have 30 percent of next month's sales in units) in ending finished goods inventory. This policy was met in December. Company policy is to have 40 percent of next month's production needs in ending raw materials inventory. The production needs for April is 95,500. This policy was met in December. It takes three pounds of material to produce each unit and the cost is $2.75/pound. It takes 2.5 hours of direct labor to produce one unit. The average wage cost is $14. Variable overhead rate is $6 per direct labor hour and fixed overhead is $15,000 per month. The company pays a 3% commission on sales Company has fixed selling and administrative expenses as follows: Rent $6,000/month Utilities 1,200/month Advertising 400/month Office Salaries 5.000/month Required: A. Prepare a sales budget for the January, February and March and for the first quarter in total. B. Prepare a production budget for January, February and March and for the first quarter in total. C. Prepare a direct materials purchases budget for January, February and March and for the first quarter in total. D. Prepare a direct labor budget for January, February and March and the quarter in total. E. Prepare an overhead budget for January, February and March and the quarter in total. F. Prepare a selling and administrative expenses budget for January, February and March and in total for the quarter