Galactic Inc. manufactures flying drone toys. Sales units for January, February, March, April and May were 300, 280, 352, 312, and 380 respectively.

Required: 1. The companys policy for ending finished goods is 25 percent of next month's sales. Determine production budget for the first quarter. 2. The drone toy includes 2 LED lights, which cost $15 each. The company requires ending direct materials to be 20 percent of next month's materials requirement. Determine direct materials purchases budget with respect to LED lights for the first quarter.