Chapter 22 Homework Question 5 of 19 13.33/20 Fuqua Company's sales budget projects unit sales of part 1987 of 10,300 units in January, 12,600 units in February, and 13,800 units in March. Each unit of part 1987 requires 3 pounds of materials, which cost $4 per pound. Fuqua Company desires its ending raw materials inventory to equal 40% of the next month's production requirements, and its ending finished goods inventory to equal 20% of the next month's expected unit sales. These goals were met at December 31, 2019. Your answer is correct. Prepare a production budget for January and February 2020. FUQUA COMPANY Production Budget For the Two Months Ending February 28, 2020 January February Expected Unit Sales 10300 1260 Add Desired Ending Finished Goods Inventory 2520 276 Total Required Unit 12820 153 Less Beginning Finished Goods Inventory 2060 2520 Required Production Units 10760 1284 f Chapter 22 Homework Question 5 of 19 13.33/20 Prepare a direct materials budget for January 2020. FUQUA COMPANY Direct Materials Budget For the Month Ending January 31, 2020 January Expected Unit Sales Direct Material Pounds Per Unit Total Materials Required Add Desired Ending Finished Goods Inventory Total Materials Required Less Beginning Direct Materials (Pounds) Required Production Units Cost Per Pound $ Required Production Units $ e Textbook and Media + Chapter 22 Homework Question 4 of 19 - /20 Rensing Ltd. estimates sales for the second quarter of 2020 will be as follows. Units 2,590 Month April May June 2,450 2,400 The target ending inventory of finished products is as follows. March 31 April 30 May 31 June 30 2,030 2.270 2,160 2.320 2 units of material are required for each unit of finished product. Production for July is estimated at 2,620 units to start building inventory for the fall sales period. Rensing's policy is to have an inventory of raw materials at the end of each month equal to 70% of the following month's production requirements. Raw materials are expected to cost $4 per unit throughout the period. Calculate the May raw materials purchases in dollars. Raw material purchases cost $