25.000 Question 1. James Company is preparing budgets for the Third quarter of 2019. All relevant information is presented below. A. James Company expects sales as shown below: Budgeted Sales (Units) July August 28,000 September October 42,000 November 50,000 December 58.000 The sales price is $32 per unit. The desired ending inventory of units is 15% higher than the beginning inventory of 1,000 units. A. Prepare a sales budget for the third quarter, in total, October by month. 36.000 2019 July August September TotalOctober Budgeted sales in units Sales Price Per Unit Total Budget Sales B. James Company is preparing a production budget for the third quarter. Ending inventory level must equal 15% of the next month's sales. B. Prepare a production budget for the third quarter, in total, October and November by month. 2019 Q3 July August September Total October November Next Month Budget Sale Ratio of Inventory Desired Units in Ending inventory Plus: Budgeted sales in Total Units Needed Less Units in Beginning Inventory Budgeted units to be Produced C. James Company uses 3 pounds of direct materials for each unit it produces, at a cost of $6 per pound. Management desires an ending inventory of 15% of next month's materials needed for production. The company ends with 24320 pounds of material in Raw Materials Inventory in October