The following information relates to a company that makes Product XYZ. 2 Each unit requires two pounds of material D20. Inventory requirements are as follows: a. The finished goods inventory on hand at the end of each month must be equal to 6,000 units plus 27% of the next month's sales. The finished goods inventory on March 31 is budgeted based on this requirement. b. The raw materials inventory on hand at the end of each month must be equal to one- half of the following month's production needs for raw materials. The raw materials inventory on March 31 for material D20 is budgeted based on this requirement. c. The company maintains no work in process inventories. A sales budget for the company for the second and third quarters of the year follows. Budgeted Sales in Units April 43,000 May 53,000 June 73,000 July 38,000 August 23,000 September 13,000 Required: 1. Prepare a production budget for the months April May June and July Company Production Budget April May June July Budgeted sales Total needs Company Production Budget April May June July Budgeted sales Total needs Required production 3. Prepare a direct materials budget showing the quantity of material D20 to be purchased for April, May, June and for the quarter in total. Company XYZ Direct Materials Budget April May June Second Quarter Production needs (lbs) Total Material ABC needs Material ABC purchases