Basket Company specializes in unique baskets. Peak sales for one of their products, the Easter basket, occur in March every year. The company has estimated the following sales for the first five months of the year for the Easter basket: Month January February March April May Expected sales in units 2,000 3,000 10,000 1,000 500 T Each basket requires 2 meters of plastic. The cost per meter is $2.00. The company wants to ensure it has enough plastic on hand at all times and therefore has indicated that ending inventory will be 10% of the following month's production needs for plastic. The company had 1,080 meters of plastic on hand as at January 1st. The company puts all purchases of plastic on account and pays for it the month following purchase. Purchases of plastic in December amounted to $2,000. Due to the intricate design, the company uses substantially all production line workers to create the baskets. Each basket takes 1.5 hours to produce and the direct labor rate per hour is $12.00. Required: 1. Prepare a production budget for the first three months of the year. 2. a) Create a direct materials budget for the first quarter of the year. b) Create a cash disbursements budget for direct materials for the first quarter of the year. c) What is the accounts payable balance as at March 31"? 3. Create a direct labor budget for the first quarter of the year