Fuqua Company's sales budget projects unit sales of part 1982 of 10,200 units in January, 12,600 units in February, and 13,800 units in March. Each unit of part 198Z requires 4 pounds of materials, which cost $3 per pound. Fuqua 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, 2019. (a) Your answer is correct. Prepare a production budget for January and February 2020. FUQUA COMPANY Production Budget For the Two Months Ending February 28, 2020 Expected Unit Sales Add : Desired Ending Finished Goods Inventory Total Required Units January 10200 2520 12720 Less Beginning Finished Goods Inventory 2040 Required Production Units 10680 February 12600 2760 15360 2520 12840 Prepare a direct materials budget for January 2020. FUQUA COMPANY Direct Materials Budget For the Month Ending January 31, 2020 January Units To Be Produced 10680 Direct Material Pounds Per Unit 2 Total Pounds Needed for Production 32040 Add : Desired Pounds in Ending Materials Inventory 15408 Total Materials Required 47448 Less Beginning Direct Materials (Pounds) 12816 Direct Materials Purchases 34632 Cost Per Pound 3 Total Cost of Direct Materials Purchases 138528