Buageted unit sales January Budgeted unit sales - February Sales price per unit Desired ending finished goods inventory 2,800 3,750 $60 20% of next months budgeted units sold 600 units 650 units 30% of next month's direct February desired ending finished goods inventory units Finished goods inventory, December balance Desired ending raw materials inventory materials needed February desired ending raw materials inventory Raw materials inventory, December balance Direct material cost Direct material needed per unit 2,000 1,500 $20 1.5 In addition to this information, budgeted sales are expected to be 40% cash and 60% credit. The credit sales will be collected in the month following the sale. The accounts receivable balance at the end of December was $30,000. Using the above information, complete the budgets on the next page (show Prepare a production budget for January and February. (6 points) February January Budgeted units to be sold Plus: Desired units in ending inventory Total units needed Less: Units in beginning inventory Budgeted units to be produced a. Prepare the sales budget for January and February (7 points) Prepare a direct materials budget for January and February. (9 points) January February Budgeted units to be sold Sales price per unit Total budgeted sales February January Budgeted units to be produced Direct material needed per unit Cash sales Direct materials needed for production Plus: Desired materials in ending inventory Credit sales Total budgeted sales Total direct materials needed Cash collected: Less: Direct materials in beginning inventory Budgeted purchases of direct materials From cash sales From prior month credit sales Total cash receipts Direct material cost Budgeted cost of direct materials