3. Garver Industries has budgeted the following unit sales: Units 12,000 2018 January February March April May 8,500 10,000 11,000 15,000 The finished goods units on hand on December 31, 2017, was 2,500 units. Each unit requires 3 pounds of raw materials that are estimated to cost an average of $5 per pound. It is the company's policy to maintain a finished goods inventory at the end of each month equal to 25% of next month's anticipated sales. They also have a policy 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 9,640 pounds of raw materials on hand at December 31, 2017. Instructions For January and February 2018, prepare (1) a production budget and (2) a direct materials budget. Please round any decimals up to the next dollar or unit