Fuqua Company's sales budget projects unit sales of part 198Z of 10,000 units in January, 12,000 units in February, and 13,000 units in March. Each unit of part 198Z requires 4 pounds of materials, which cost $2 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, 2016. (a) Your answer is correct. Prepare a production budget for January and February 2017 FUQUA COMPANY Production Budget For the Two Months Ending February 28, 2017 Januar February Expected Unit Sales Add Desired Ending Finished Goods Inventory Total Required Units Less | | Beginning Finished Goods Inventory 10000 12000 2400 2600 12400 14600 2000 2400 Required Production Units 10400 12200 Prepare a direct materials budget for January 2017 FUQUA COMPANY Direct Materials Budget For the Month Ending January 31, 2017 January Units To Be Produced 10400 Direct Material Pounds Per Unit 4 Total Pounds Needed for Production 41600 Add Desired Pounds in Ending Materials Inventory 19968 Total Materials Required 61568 Less Beginning Direct Materials 16640 Direct Materials Purchases 44928 Cost Per Pound Total Cost of Direct Materials Purchases 89856