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Oak Creek Company is preparing its master budget for 2020. Relevant data pertaining to its sales, production, and direct materials budgets are as follows. Sales: Sales for the year are expected to total 1,000,000 units Quarterly sales are 20%, 25%, 25%, and 30%, respectively. The sales price is expected to be $40 per unit for the first three quarters and $45 per unit beginning in the fourth quarter. Sales in the first quarter of 2021 are expected to be 10% higher than the budgeted sales for the first quarter of 2020. Production Management desires to maintain the ending finished goods inventories at 20% of the next quarter's budgeted sales volume Direct materials: Each unit requires 2 kg of raw materials at a cost of $10 per kilogram. Management desires to maintain raw materials inventories at 10% of the next quarter's production requirements. Assume the production requirements for the first quarter of 2021 are 490,000 kg OAK CREEK COMPA Direct Materials Bud For the Year Ending Decemb 1 Units to be produced 210000 250000 Direct materials per unit 2 2 Total cost of direct materials purchases 420000 500000 Add Desired ending inventory 50000 52000 Total materials required 470000 552000 Beginning materials inventory 42000 -50000 Dimarts purchase 428000 502000 Costello V $ 10 $ 10 Total cost of direct to purchase si 4200000 5020000 v Units to be produced Direct materials per unit Total cost of direct materials purchases V Units to be produced Total kilograms required for production Direct materials per unit Direct materials purchases Beginning materials inventory Total materials required Desired ending inventory Total cost of direct materials purchases Cost per kilogram Direct materials purchases > Cost per kilogram >