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The Energy Company produces an energy drink for which the main ingredient is caffeine. Budgeted sales for 2022 are a s follows: The company has

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The Energy Company produces an energy drink for which the main ingredient is caffeine. Budgeted sales for 2022 are a s follows: The company has the following inventory requirements: - The finished goods ending inventory must be equal to 3,000 cans plus 10% of the following month's sales. - Each can of energy drink requires 5 grams of caffeine. - The raw materials ending inventory must be equal to 10% of the following month's production needs for raw materials. Required (the three-line report heading is not needed): 1. Prepare a production budget for the second quarter beginning April, by month and in total, for the cans of energy drink. ( 9.5 marks) 2. Prepare a direct material purchases budget showing the quantity of caffeine to be purchased for May. ( 3.5 marks)

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