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Question No. 3 16 Marks.): BUC Company is preparing its master budget for 2020. Relevant data relating to its production and direct materials budgets are as follows: Production Expected quarterly budgeted units to be produced in 2020 are 2,000 units: 6,000 units: 4,000 units and 8,000 units respectively. Direct materials: Each unit requires 2 Kilograms of raw materials at a cost of 4 per kilogram Management desires to maintain ending raw materials inventories at 25% of the next quarter's production requirements Assume the production requirements for the first quarter of 2021 are 8,000 Kilograms. Also, assume that the beginning direct materials inventory amount is 1,000 kilograms for the first quarter of 2020 Required: Prepare the Direct materials budget for 2020 Answer BUC Company Direct Materials Budget For the Year Ending December 31, 2020 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Page 4 of 7