Jacob Company, a manufacturer, predicts sales of 9,750 units in January, 9,000 units in February, 12,750 units in March, and 14,000 units in April. The company wants each month's ending finished goods inventory to equal 30% of next month's predicted unit sales. Beginning finished goods inventory for January is 2,925 units. Each unit of finished goods requires 0.35 pounds of direct materials at a cost of $11.00 per pound, and 4.5 hours of direct labor at a cost of $18 per 3 hour, Additionally, the company wants each month's ending raw materials inventory to equal 50% of next month's budgeted production. Prepare a sales budget, a production budget, a direct materials and a direct labor budget , Jacob Company Budget Assumptions For the months of January, February, and March 2023 9 Selling price per unit 10 Budgeted sales (units) January $280 9,750 11 Budgeted sales (units) April 12 Budgeted production (units) April 13 14 15 Ratio of ending finished goods inventory to next month's sales Ratio of ending raw materials inventory to next month's requirements Number of units in finished goods inventory, January 1 16 Number of pounds in raw materials inventory, January 1 Budgets Instructions February March $280 $280 9,000 12,750 14,000 14,700 30% 50% 2,925 1.667 A B C Jacob Company D E F Budget Assumptions For the months of January, February, and March 2023 Selling price per unit Budgeted sales (units) Budgeted sales (units) April Budgeted production (units) April January $280 9,750 Ratio of ending finished goods inventory to next month's sales Ratio of ending raw materials inventory to next month's requirements Number of units in finished goods inventory, January 1 Number of pounds in raw materials inventory, January 1 Number of pounds of raw materials required per unit Cost per pound of raw materials Number of direct labor hours required per unit Rate per direct labor hour February March $280 $280 9,000 12,750 14,000 14,700 30% 50% 2,925 1,667 0.35 $11.00 4.5 $18.00 44 A B D E 45 46 47 48 Jacob Company Direct Materials Budget For the months of January, February, and March 2023 49 January February March 50 Budgeted units to produce 9,525 10,125 13,125 51 Materials requirements per unit 0.35 0.35 0.35 52 Materials needed for production (pounds) 3,334 3,544 4,594 53 54 55 56 Add: Budgeted ending inventory (pounds) Total materials requirements (pounds) Deduct: Beginning inventory (pounds) Materials to be purchased (pounds) 57 58 Material price per pound $11.00 $11.00 $11.00 59 Total budgeted cost of direct materials purchases