Garver Industries has budgeted the following unit sales:

$\backslash$table$[[2020,$Units$],[$January$,10,000],[$February$,8,000],[$March$,9,000],[$April$,11,000],[$May$,15,000]]$

The finished goods units on hand on December $31,2019,$ 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 $8,640$ pounds of raw materials on hand at December $31,2019.$

Instructions

For the first quarter of $2020,$ prepare:

$(1)$ a production budget $(4$ marks$)$

$(2)$ a direct materials budget $(4$ marks$)$