Galactic Inc. manufactures flying drone toys. Sales units for January, February, March, April and May were 700, 680, 752, 712, and 780 respectively.

Required:

1. The companys policy for ending finished goods is 25 percent of next month's sales. Prepare a 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. Prepare a direct materials purchases budget with respect to LED lights for the first quarter.

• Required 1
• Required 2

The companys policy for ending finished goods is 25 percent of next quarters sales. Prepare a production budget for the first quarter.

	Jan	Feb	Mar	1st Quarter
Budgeted Production in Units

• Required 2

The drone toy includes 2 LED lights, which cost $15 each. The company requires ending direct materials to be 20 percent of next quarters materials requirement. Prepare a direct materials purchases budget for the first quarter. (Do not round intermediate calculations.)

	Jan	Feb	Mar	1st Quarter
Budgeted Cost of Direct Material Purchases