Preston Manufacturing produces self-watering planters for use in upscale retail establishments. Sales projections for the first five months of the upcoming year show the estimated unit sales of the planters each month to be as follows: : (Click the icon to view additional information.) Inventory at the start of the year was 900 planters. The desired inventory of planters at the end of each month should be equal to 25% of the following month's budgeted sales. Each planter requires two pounds of polypropylene (a type of plastic). The company wants to have 10% of the polypropylene required for next month's production on hand at the end of each month. The polypropylene costs $0.20 per pound. Read the requirements Requirement 1. Prepare a production budget for each month in the first quarter of the year, including production in units for each month and for the quarter. Preston Manufacturing Production Budget For the Months of January through March January February March Quarter Unit sales 3,600 3,300 3,100 10,000 Plus: Desired ending inventory 825 775 1,175 1,175 Total needed 4.425 4,075 4,275 11,175 900 825 775 900 Less: Beginning inventory 3,525 3,250 3,500 10,275 Units to produce Requirement 2. Prepare a direct materials budget for the polypropylene for each month in the first quarter of the year, including the pounds of polypropylene required and the total cost of the polypropylene to be purchased. Start by preparing the direct materials budget through the total quantity needed, then complete the budget. March Quarter Preston Manufacturing Direct Materials Budget For the Months of January through March January February Units to be produced 3,600 3,300 Multiply by: Quantity of direct materials needed per unit Quantity needed for production Plus: Desired ending inventory of direct materials Total quantity needed 3,100 10,000