att Company has budgeted the following unit sales 2011 Units January 10.000 February 8.000 March 9.000 April 11.000 May 15.000 The finished goods units on hand on December 31, 2010. was 2.000 units. Each unit requires 2 pounds of raw materials that are estimated to cost an average of $4 per pound it is the company's policy to maintain a finished goods inventory at the end of each month equal to 20% 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 5.760 pounds of raw materials on hand at December 31, 2010. Instructions For the first quarter of 2011, prepare (1) a production budget and (2) a direct materials budget