Pillows Ltd.Pillows Ltd.

makes decorative throw pillows for home use. The company sells the pillows to home? dcor retailers for

$ 20$20

per pillow. Each pillow requires

1.101.10

yards of? fabric, which the company obtains at a cost of

$ 9$9

per yard. The company would like to maintain an ending stock of fabric equal to

1010?%

of the next? month's production requirements. The company would also like to maintain an ending stock of finished pillows equal to

2525?%

of the next? month's sales. Sales? (in units) are projected to be as follows for the first three months of the? year:

January. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

180,000

February. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

200,000

March. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

215,000

Prepare the following budgets for the first three months of the? year, as well as a summary budget for the? quarter:

1.	Prepare the sales? budget, including a separate section that details the type of sales made. For this? section, assume that 1010?% of the? company's pillows are cash? sales, and the remaining 9090?% are sold on credit terms.
2.	Prepare the production budget. Assume that the company anticipates selling 220 comma 000220,000 units in April.
3.	Prepare the direct materials purchases budget. Assume the company needs 240 comma 000240,000 yards of fabric for production in April.