Garver Industries has budgeted the following unit sales: January February March April May Units 10,000 8,000 9,000 11,000 15,000 The finished goods units on hand on December 31, 2017, 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 10% 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 20% of the pounds needed for the following month's production. There were 3,920 pounds of raw materials on hand at December 31, 2017 For the first quarter of 2017, prepare (1) a production budget and (2) a direct materials budget. Ensure your quarter and numbers are properly accounted for GARVER COMPANY Production Budget For the Quarter Ended March 31, 2018 January February March. Total Expected unit sales Desired ending finished goods units Total required units Less: Beginning finished goods units Required production units GARVER COMPANY Direct Materials Budget For the Quarter Ended March 31, 2018 January February March Total Units to be produced Direct materials per unit Total pounds needed for production Desired ending direct materials (pounds) Total materials required Less: Beginning direct materials (pounds) Direct materials purchases Cost per pound Total cost of direct materials purchases