The following information relates to a company that produces a single product. Each unit requires three pounds of material Inventory requirements are as follows a. The finished goods inventory on hand at the end of each month must be equal to 5,000 units plus 32% of the next month's sales. The finished goods inventory on December 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 December 31 is budgeted based on this requirement c. The company maintains no work in process inventories. A sales budget for the company for the first and second quarters of the upcoming year follows January February March April May June Budgeted Sales in Units 40,000 50,000 70.000 35,000 20,000 10,000 Required: 1. Prepare a production budget for the upcoming year for the months of January February March and April Production Budget January February March April Budgeted sales Total needs Required production 3. Prepare a direct materials budget showing the quantity of material to be purchased for January, February March and for the quarter in total. Direct Materials Budget January February March First Quarter Production needs (lbs) Total Material needs Material purchases