Alpha Company, a manufacturer, predicts sales of 3,600 units in January, 3,300 units in February, 4,800 units in March, and 5,300 units in April. The company wants each month's ending finished goods inventory to equal 20% of next month's predicted unit sales. Beginning finished goods inventory for January is 720 units. Each unit of finished goods requires 0.30 pounds of direct materials at a cost of $8.00 per pound, and 2.0 hours of direct labor at a cost of $16 per hour. Additionally, the company wants each month's ending raw materials inventory to equal 40% of next month's budgeted production. Prepare a sales budget, a production budget, a direct materials and a direct labor budget. Alpha Company Budget Assumptions For the months of January, February, and March 2022 Selling price per unit Budgeted sales (units) Budgeted sales (units) April Budgeted production (units) April January $100 3,600 Ratio of ending finished goods inventory to next month's sales Ratio of ending raw materials inventory to next month's requirements Number of units in finished goods inventory, January 1 Number of pounds in raw materials inventory, January 1 Number of pounds of raw materials required per unit Cost per pound of raw materials Number of direct labor hours required per unit Rate per direct labor hour Alpha Company Sales Budget February March $100 $100 3,300 4,800 5,300 5,600 20% 40% 720 425 0.30 $8.00 2.0 $16.00 Budgeted sales (units) Selling price per unit For the months of January, February, and March 2022 Total budgeted sales (dollars) January 3,600 $100 $360,000 February March 3,300 4,800 $100 $330,000 $100 $480,000