E8-21 (Algo) Preparing Production and Direct Materials Purchases Budgets [LO 8-3b] Galactic Inc. manufactures flying drone toys. Sales units for January, February, March, April and May were 620, 600, 672, 632, and 700 respectively. Required: 1. The company's policy for ending finished goods is 25 percent of next month's sales. Prepare a 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. Prepare a 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 quarter's sales. Prepare a production budget for the first quarter. Jan Feb Mar 1st Quarter Budgeted Production in Units 0 < Required 1 Required 2 >