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 320, 300, 372, 332, and 400 respectively. 5.7 points Required: 1. The company's policy for ending finished goods is 25 percent of next quarter'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 quarter's materials requirement. Prepare a direct materials purchases budget with respect to LED lights for the first quarter. Skipped eBook Complete this question by entering your answers in the tabs below. Hint Print References 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 Required 1 Required 2 > 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 320, 300, 372, 332, and 400 respectively. 5.7 points Required: 1. The company's policy for ending finished goods is 25 percent of next quarter'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 quarter's materials requirement. Prepare a direct materials purchases budget with respect to LED lights for the first quarter. Skipped eBook Complete this question by entering your answers in the tabs below. Hint Print References 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 quarter's materials requirement. Prepare a direct materials purchases budget for the first quarter. (Do not round intermediate calculations.) Jan Feb Mar 1st Quarter Budgeted Cost of Direct Material Purchases Required 1 Required 2