AP It was autumn, Sue's favorite time of year-and busiest time of year, too. She works at a company that produces apple-pie filling: sweet, yet a little tart, with just a touch of cinnamon-so tasty! And with ripe apples from local suppliers being in season, her company is ramping up production. The following expectations are in place for this last quarter of the year. October November December January Sales forecast (units) 18,000 25,000 20,000 12,000 Additional information: Budgeted selling price is $3 per unit. Desired ending inventory of finished goods is 20% of next month's sales. Desired ending inventory of apples is 25% of next month's production needs for October and November, and 10% of next month's production needs for December Desired ending inventory of spice mix is 20% of next month's production needs. Each finished unit requires 2 pounds of apples. Each finished unit requires 4 cup of spice mix. Cost per pound of apples is $0.40. Cost per cup of spice mix is $0.30. Estimated production for January is 10,000 units. On September 30, the company held exactly its desired levels for both DM Inventory and FG Inventory. Required a. Prepare the production budget for apple-pie filling for the fourth quarter. b. Prepare the fourth-quarter DM purchases budget for (1) apples and (2) spice mix. c. Explain a plausible reason why the company's desired ending inventory percentages for these direct materials are different.