Mississippi Marine Corporation specializes in fishing equipment and is located in Dubuque, lowa. The company's budgeted sales for the next four months of Its spinning fishing pole follows: April May June July Unit Sales 88,888 90,000 120,000 95,000 The company is now in the process of preparing a production budget for the second quarter. Past experience has shown that end-of- month Inventory levels must equal 10% of the following month's unit sales. The Inventory at the end of March was 8,000 units. Required: Prepare a production budget by month and in total, for the second quarter. Mississippi Marine Corporation Production Budget April May June Quarter Budgeted unit sales Total needs Required production in units Four ounces of zinc oxide are required for each bottle of Hawalian Gold, a suntan lotion made in Orange, California. The zinc oxide cost is $1.60 per ounce. Budgeted production of Hawallan Gold is given below by quarters for Year 2 and for the first quarter of Year 3: First 90,000 Year 2 Second Third Fourth 120, eee 188,88 130,000 Year 3 First 100,000 Budgeted production, in bottles There is a high demand for zinc oxide which requires the company to have large Inventories of the ingredient in case of a shortage. For this reason, the zinc oxide Inventory at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 72,000 ounces of zinc oxide will be on hand to start the first quarter of Year 2. Required: Prepare a direct materials budget for zinc oxide, by quarter and in total, for Year 2. Hawaiian Gold Direct Materials Budget - Year 2 Quarter First Second Third Fourth Year Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production Total units of raw materials needed Units of raw materials to be purchased Unit cost of raw materials Cost of raw materials to purchased