The Peak Company sells hiking equipment. Selling price is $185 per unit. The projected sales quantity for the next quarter are as follows:

Month Units to be sold

April 2,000

May 3,500

June 1,500

(i) Produce a sales budget for April, May and June.

(ii) The company's policy is to have an ending inventory of finished product equal to 20% of next month's sales. Beginning inventory on 1 April is 270 units.

Produce a production budget for April and May.

(iii) Each unit of finished product requires 3 kg of direct materials @ $2.50 per kg. Direct material ending inventory should be 25% of the next month's production needs. Beginning inventory on 1 April is 1,715 kg.

Produce a direct material purchase budget in kg and in dollars for April only.