6. Production and purchases budget. 22 points. A furniture company manufactures a variety of cedar chests to sell to small buiness retailers throughout the mid-Atlantic region. Management is preparing a budget for the first quarter of 2021. The following sales forecast has been developed by the firm's marketing manager: January February March April May 10000 chests 12000 chests 14000 chests 15000 chests 16000 chests The inventory of cedar chests at the end of each month must be equal to 20% of the budgeted sales for the next month. On January 1 there will be 2500 cedar chests on hand. Each cedar chest requires 20 board feet of planks, and the division ends each month with enough cedar to cover 25% of the next month's production requirements. On January 1, there will be 49,000 board feet of cedar on hand. Required: a) Prepare a production budget in units for January through April, keeping in mind that beginning inventory + units produced - ending inventory = units sold. b) Prepare a direct materials purchases budget for January through March, keeping that in mind that beginning inventory + purchases - ending inventory = DM used in production. c) If cedar planks cost $9 per board foot, what will be the dollar amount of purchases in each month