Question 1. James Company is preparing budgets for the Third quarter of 2019. All relevant information is presented below. A. James Company expects sales as shown below: July Budgeted Sales (Units) 25,000 August 28,000 September 36,000 October 42,000 November 50,000 December 58,000 The sales price is $32 per unit. The desired ending inventory of units is 15% higher than the beginning inventory of 1,000 units. A. Prepare a sales budget for the third quarter, in total, October by month. 2019 Q3 Total July August September October Budgeted sales in units Sales Price Per Unit Total Budget Sales B. James Company is preparing a production budget for the third quarter. Ending inventory level must equal 15% of the next month's sales. B. James Company is preparing a production budget for the third quarter. Ending inventory level must equal 15% of the next month's sales. B. Prepare a production budget for the third quarter, in total, October and November by month. 2019 Q3 September Total July August October November Next Month Budget Sale Ratio of Inventory Desired Units in Ending inventory Plus: Budgeted sales in units Total Units Needed Less: Units in Beginning Inventory Budgeted units to be Produced C. James Company uses 3 pounds of direct materials for each unit it produces, at a cost of $6 per pound. Management desires an ending inventory of 15% of next month's materials needed for production. The company ends with 24320 pounds of material in Raw Materials Inventory in October C. Prepare a Direct Materials Budget for the third quarter, in total and October by month. 2019 Q3 July August September Total October Budgeted units to be Produced Materials required per unit Material units needed for production Plus: desired/budgeted ending inventory Total material units required Less: beginning inventory Material units to be purchased Material cost per unit | Total cost of direct materials