The marketing department of Gaeber Industries has submitted the following sales forecast for the upcoming fi scal year: The company expects to start the fi rst quarter with 1,600 units in fi nished goods inventory. Management desires an ending fi nished goods inventory in each quarter equal to 20% of the next quarters budgeted sales. The desired ending fi nished goods inventory for the fourth quarter is 1,700 units. In addition, the beginning raw materials inventory for the fi rst quarter is budgeted to be 3,120 pounds and the beginning accounts payable for the fi rst quarter is budgeted to be $14,820. Each unit requires 2 pounds of raw material that costs $4.00 per pound. Management desires to end each quarter with an inventory of raw materials equal to 20% of the following quarters production needs. The desired ending inventory for the fourth quarter is 3,140 pounds. Manage- ment plans to pay for 75% of raw material purchases in the quarter acquired and 25% in the follow- ing quarter. Required: 1. Prepare the companys production budget for the upcoming fi scal year. 2. Prepare the companys direct materials budget and schedule of expected cash disbursements for purchases of materials for the upcoming fi scal year.