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Sandhill Company's sales budget projects unit sales of part 1982 of 10,400 units in January 13,000 units in February, and 13,400 units in March. Each unit of part 1982 requires 4 pounds of materials, which cost $3 per pound, Sandhill Company desires its ending raw materials inventory to equal 40% of the next month's production requirements, and its ending finished goods inventory to equal 20% of the next month's expected unit sales. These goals were met at December 31, 2019. (a) Your answer is correct. Prepare a production budget for January and February 2020. SANDHILL COMPANY Production Budget For the Two Months Ending February 28, 2020 January February Expected Unit Sales 10400 13000 Add 4Desired Ending Finished Goods Inventory 2600 2680 Prepare a production budget for January and February 2020. SANDHILL COMPANY Production Budget For the Two Months Ending February 28, 2020 January February Expected Unit Sales 13000 10400 2600 2680 Total Required Units 13000 15680 Beginning Finished Goods Inventory Less 2600 2080 10920 13080 Required Production Units e Textbook and Media (b) Prepare a direct materials budget for January 2020. SANDHILL COMPANY Direct Materials Budget January