The Timbrick Company produces and sells a single product.The production of this product requires 15 liters of direct material for each unit produced.Timbrick has an inventory policy which sets a target ending inventory of finished goods equal to 15% of next months expected unit sales.The target ending inventory for direct materials is 30% of the materials needed for production for next month.The budgeted cost of direct materials is $0.40 per liter.Normally, Timbrick pays the suppliers for 30% of a month's purchases in the month of the purchase and they pay the remainder (70%) the next month.

On 1 January 203, Timbrick produced a budget for the three-month period (January, February, March).An incomplete version of that budget is shown below. (Missing values show "-")

January

February

March

1stQuarter

PRODUCTION BUDGET

Budgeted unit sales

23,000

24,000

36,000

83,000

Target ending finished goods inventory

3,600

-

-

-

Total requirements (finished goods)

26,600

29,400

40,800

-

Beginning finished goods inventory

Units to be produced

22,750

-

-

83,950

DIRECT MATERIALS

PHYSICAL UNITS BUDGET

Materials required per unit (liters/unit)

15

15

15

15

Materials to be used in production

341,250

-

-

1,259,250

Target ending materials inventory

116,100

159,300

135,900

-

Total requirements (materials)

457,350

-

-

-

Beginning materials inventory

-

-

-

-

Materials to be purchased

353,775

430,200

-

1,291,575

COST BUDGET

Material cost per liter($/liter)

0.40

0.40

0.40

0.40

Total cost of purchases

$141,510

-

-

$516,630

Cash paid to suppliers

$135,693

-

$181,368

-

You do NOT need to fill in all the missing values in the schedule above.You need to answer the following questions.Each question is 3 marks.

Required:Please computethe follows.

1. Beginning finished goods inventory for January, 203.

2. Total requirements (finished goods) for the 1stQuarter

3. Budgeted unit sales for April, 203.

4.Units to be produced for February, 203.

5. Estimate the total cost of purchases for December, 202.