company is preparing its budget for 2019. the company has collected the following information from the managers.

1. sales:

sales for November 2018 112,500 units

sales for the December 2018 102,100 units

Expected sales for January 2019 113,000 units

Expected sales for February 2019 112,500 units

Expected sales for March 2019 116,000 units

Expected sales for April 2019 125,000 units

Expected sales for May 2019 137,500 units

Selling price unit $12

The company likes to keep 15% of next months unit sales in ending finished goods inventory. all sales are on credit, 80% collected in the month of sale and 20% in the month after sale.

Accounts receivable on December 31, 2018 , totaled $170,000

2. Direct Material:

2 pounds of direct materials is needed to produce one unit. the company likes to keep 5% of the materials needed for the next month's production in it's raw material ending inventory. raw material on hand on December 31, 2018, totaled 10,000 pounds.Direct material cost is 5$ per pound. payment for material is made on credit ., 70% is paid in the month of purchase, and 30% is paid after the month of purchase.

Accounts payable on December 31, 2018, totaled

3. direct labor

labor requires. 5 hour per unit for completion and is paid at a rate of 10$ per hour.

required: Prepare the following for January & February 2019:

a) Production Budget

b) Direct material Purchase Budget in pounds and $

c) Schedule of expected cash payments for direct material purchase.