Pico Company estimates that unit sales will be 10,500 in quarter 1, 12,700 in quarter 2, 14,400 in quarter 3, and 18,100 in quarter 4. Management desires to have an ending finished goods inventory equal to 25% of the next quarter's expected unit sales. Hint: Beginning inventory in one period is the ending inventory in prior period. Especially for Quarter 1's beginning inventory, apply 25% of the Quarter 1's expected unit sales to find out the ending inventory in the prior quarter, which will become the beginning inventory in Quarter 1. When typing your responses for amounts, do NOT include a dollar sign. For example, if your answer is $10,000, you should be typing 10,000 or 10,000.00 without any dollar sign. For number of units, do NOT include decimal places. For example, if your answer is 5 units, then you should be typing 5 and NOT 5.00. . For Production budget. all numbers should be entered without any decimal places. Prepare a production budget by quarters for the first 6 months (quarter 1 and quarter 2) of 2030. Production Budget Pico Company Production Budget For the Six Months Ending June 30, 2030 Six Months Quarter 1 Quarter 2 (Total) Expected Unit Sales Add: Desired Ending Finished Goods Inventory Total Required Units Less: Beginning Finished Goods Inventory Required Production UnitsICE PF X istructure.com/courses/79903/quizzes/521170/take Petro Company has 2,016 pounds of raw materials in its December 31, 2029, ending Inventory. Required production for January and February of 2030 are 4,200 and 5,800 units, respectively. 2 pounds of raw materials are needed for each unit, and the estimated cost per pound is $8. Management desires an ending inventory equal to 24% of next month's materials requirements. Hint Beginning inventory in one period is the ending inventory in prior period. Especially for January's beginning inventory, apply 24% of the January's materials requirements to find out the ending inventory in the prior month, which will become the beginning inventory in January. . When typing your responses for amounts, do NOT include a dollar sign. For example, if your answer is $10,000, you should be typing 10,000 or 10,900.00 without any dollar sign. For number of units, do NOT include decimal places. For example, if your answer is 5 units, then you should be typing 5 and NOT 5.00. Prepare the direct materials budget for January Direct Materials Budget Petro Company Direct Materials Budget For the Month Ended January 31, 2030 Units to be Produced Direct Materials (Pounds) per Unit Total Pounds Required for Production Add: Desired Ending Inventory Total Materials Required Less: Beginning Materials Inventory Direct Materials Purchase Cost per PoundFor Gong Company, units to be produced are 5,110 in quarter 1 and 6,500 in quarter 2. It takes 1.5 hours to make a finished unit, and the expected hourly wage rate is $16 per hour. When typing your responses for amounts, do NOT include a dollar sign. For example, if your answer is $10.090, you should be typing 10,000 or 10.000.90 without any dollar sign. For number of units, do NOT include decimal places. For example, if your answer is 5 units, then you should be typing 5 and NOT 5.00. Prepare a direct labor budget by quarters for the 6 months (quarter 1 and quarter 2) ending June 30, 2030 Direct Labor Budget Gong Company Direct Labor Budget For the Months Ending June 30, 2030 Quarter 1 Quarter 2 Six Months (Total) Units to be Produced Direct Labor Time (Hours) per Unit Total Required Direct Labor Hours Direct Labor Cost per Hour Jotal Direct Labor Cost