Fuqua Company's sales budget projects unit sales of part 198Z of 10,200 units in January, 12, 100 units in February, and 13,900 units in March. Each unit of part 198Z requires 3 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, 2016. V 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 v January February Expected Unit Sales 10200 1210 Add Desired Ending Finished Goods Inventory 2420 278 Total Required Units 12620 1488 Less Beginning Finished Goods Inventory 2040 2420 Required Production Units 10580 12461 e Textbook and MediaPrepare a direct materials budget forJanuary 2017. FUQUA COM PANY Direct Materials Budget For the Month Ending January 31201? V January Units To Be Produced V l 10530 Direct Material Pounds Per Unit V l 3 Total Materials Required V l 317*10 Add V l1 l Desired Pounds in Ending Materials Inventory V l 14952 Total Materials Required V l 46692 Less V l1 l Beginning Direct Materials V l l Direct Materials Purchases V l l Cost Per Pound V l 5 l 3 Total Cost of Direct Materials Purchases V 5 l