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 400, 380, 452, 412 , and 480 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. The company's policy for ending finished goods is 25 percent of next month's sales. Determine production budget for the first quarter