Exercise 13-8 Sarasota Company's sales budget projects unit sales of part 198Z of 10,000 units in January, 12,400 units in February, and 13,300 units in March. Each unit of part 1982Z requires 3 pounds of materials, which cost $5 per pound. Sarasota Company desires its ending raw materials inventory to equal 40% of the next month's production requirements, and its ending finished goods inventory to equal 20% of the next month's expected unit sales. These goals were met at December 31, 2016 Prepare a production budget for January and February 2017. SARASOTA COMPANY Production Budget For the Two Months Endin January Febraary Expected Unit Sales 12400 Add 2480 2660 Less Units To Be Produced Prepare a direct materials budget for January 2017. SARASOTA COMPANY Direct Materials Budget January