Fuqua Companys sales budget projects unit sales of part 198Z of 10,200 units in January, 14,800 units in February, and 16,600 units in March. Each unit of part 198Z requires 3 pounds of materials, which cost $4 per pound. Fuqua Company desires its ending raw materials inventory to equal 40% of the next months production requirements, and its ending finished goods inventory to equal 30% of the next months expected unit sales. These goals were met at December 31, 2013.

Prepare a production budget for January and February 2014 FUQUA COMPANY Production Budget For the Two Months Ending February 28, 2014 Janua February Prepare a direct materials budget for January 2014. FUQUA COMPANY Direct Materials Budget For the Month Ending January 31, 2014