2019 Question 3: (8 marks) (BI, C2) Ahlia Industries has budgeted the following unit sales Units January 10,000 February 8,000 March 9,000 April 11,000 May 15,000 The finished goods units on hand on December 31, 2018, was 2,000 units. Each unit requires 3 pounds of raw materials that are estimated to cost an average of S4 per pound. It is the company's policy to maintain a finished goods inventory at the end of maintaining a raw materials inventory at the end of each month equal to 30% of the pounds needed for the following month's production. There were 8,640 pounds of raw materials on hand at December 31, 2018 Instructions For the first quarter of 2019, prepare (1) a production budget and (2) a direct materials budget. 13