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 520,500,572. 532. and 600 respectively Required: 1. The companys 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 matenals requirement. Determine direct materials purchases budget with respect to LED lights for the first quarter. Complete this question by entering your answers in the tobs below. The company's polucy foe ending finkshed goods is 25 percent of next month's sales. Determine production budpet for the first quartes