1351 3 Zachary Company, a manufacturer, predicts sales of 8,250 units in January, 7,700 units in February, 10,450 units in March, and 11,500 units in April. The company wants each month's ending finished goods inventory to equal 50% of next month's predicted unit sales. Beginning finished goods inventory. for January is 4,125 units. Each unit of finished goods requires 0.45 pounds of direct materials at a cost of $11.00 per pound, and 5.5 hours of direct labor at a cost of $21 per hour. Additionally, the company wants each month's ending raw materials inventory to equal 20% of next month's budgeted production. Prepare a sales budget, a production budget, a direct materials and a direct labor budget. Zachary Company Budget Assumptions Selling price per unit Budgeted sales (units) For the months of January, February, and March 2024 January $1,000 8,250 Budgeted sales (units) April Budgeted production (units) April Ratio of ending finished goods inventory to next month's sales Ratio of ending raw materials inventory to next month's requirements Number of units in finished goods inventory, January 1 Number of pounds in raw materials inventory, January 1 Number of pounds of raw materials required per unit Cost per pound of raw materials Number of direct labor hours required per unit Rate per direct labor hour Zachary Company Sales Budget February March $1,000 $1,000 7,700 10,450 11,500 12,100 50% 20% 4,125 718 0.45 $11.00 5.5 $21.00 February March Budgeted sales (units) Selling price per unit Total budgeted sales (dollars) For the months of January, February, and March 2024 January mody Instructions Zachary Company Budgets + Se Accessibility Inventients