E8-21 (Algo) Preparing Production and Direct Materials Purchases Budgets [LO 8-3b, c) Galactic Incorporated manufactures flying drone toys. Sales units for January, February, March, April, and May were 680, 660, 732, 692, and 760 respectively. Required: 1. The company's policy for ending finished goods is 25 percent of next month's sales. Determine production budget for the first quarter. 2. The drone toy includes 2 LED lights, which cost $15 each. The company requires ending direct materials to be 20 percent of next month's materials requirement. Determine direct materials purchases budget with respect to LED lights for the first quarter. Complete this question by entering your answers in the tabs below. Required 1 Required 2 The company's policy for ending finished goods is 25 percent of next month's sales. Determine production budget for the first quarter. January February March 1st Quarter Budgeted production (units) < Required 1 Required 2 > Required 1 Required 2 The drone toy includes 2 LED lights, which cost $15 each. The company requires ending direct materials to be 20 percent of next month's materials requirement. Determine direct materials purchases budget with respect to LED lights for the first quarter. Note: Do not round intermediate calculations. Show less January February March 1st Quarter Budgeted cost of direct material purchases < Required 1 Required 2 >