Fuqua Company's sales budget projects unit sales of part 1987 of 10,700 units in January, 12,300 units in February, and 13,700 units in March. Each unit of part 1987 requires 3 pounds of materials, which cost $4 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 January Februc Expected Unit Sales 10700 Add : Desired Ending Finished Goods Inventory 2460 Total Required Units 13160 Less Beginning Finished Goods Inventory 2140 i Prepare a direct materials budget for January 2020. FUQUA COMPANY Direct Materials Budget For the Two Months Ending February 28, 2020 January vi V $ $