Garver Industries has budgeted the following unit sales:

2012: Month, Units

January, 10,000

February, 8,000

March, 9,000

April, 11,000

May, 15,000

The finished goods units on hand on December 31, 2011, was 2,000 units. Each unit requires 3 pounds of raw materials that are estimated to cost an average of $4 per pound.

It is the company's policy to maintain a finished goods inventory at the end of each month equal to 20% of next month's anticipated sales. They also have a policy of maintaining a raw materials inventory at the end of each month equal to 30% of the pounds needed for the following month's production. There were 8640 pounds of raw materials on hand at

December 31, 2011. Instructions For the first quarter of 2012, prepare (1) a production budget and (2) a direct materials budget