Axioma Ltd. has the following budgeted sales for the selected six-month period:

||Month||Unit sales

|January|90,000

|February|120,000

|March|210,000

|April|150,000

|May|180,000

|June|120,000

Axioma Ltd. sells a single product at a price of $50 per unit. There were 24,000 units of finished goods in inventory at the beginning of February. Axioma Ltd.s policy is to keep an inventory of finished goods that is equal to 20% of the unit sales for the next month.

5 kgs of materials are required for each unit of finished goods produced. Each kg of material costs $8. Inventory levels for materials equal 20% of the production needs for the next month. Materials inventory at the beginning of February was $1,104,000.

Required:

1. Prepare sales budgets in units and dollars for February and March.
2. Prepare production budgets in units for February and March.
3. Prepare direct materials usage budget in kgs and dollars for February.
4. Prepare direct materials purchases budgets (in kgs and dollars) for February.

Please only attempt if you can solve the question with a proper explanation. Please do not copy from Chegg.