Upton Inc. sells air bags for use in original equipment automobile manufacturing. Upton expects the following items to be sold in the first three months of the coming year: January 100,000 units February 95,000 units March 110,000 units The average price for an air bag is $500. Required: Prepare a sales budget for the first three months of the coming year, showing units and sales revenue by month and in total for the quarter.2. Production Budget: Upton Inc. makes air bags for use in original equipment automobile manufacturing. In the first four months of the coming year, Upton expects the following unit sales: January 100,000 units February 95,000 units March 110,000 units April 112,000 units Uptons policy is to have 25% of next months sales in ending inventory. On January 1st, it is expected that there will be 15,000 air bags on hand. Required: Prepare a production budget for the first quarter of the year. Show the number of air bags that should be produced each month, as well as for the quarter in total.3. Direct Materials Purchases Budget: Upton Inc. makes air bags for use in original equipment automobile manufacturing. Planned production in units for the first three months of the coming year is: January 108,750 units February 98,750 units March 110,500 units Each air bag requires 5 ounces of special plastic. Company policy requires that ending inventories of raw materials for each month be 10% of the next months production needs. That policy was met for the ending inventory of December in the prior year. The cost of one ounce of special plastic is $50. (Note: Round all unit amounts to the nearest unit. Round all dollar amounts to the nearest dollar). Required: 1. Calculate the ending inventory of plastic in ounces for December of the prior year, and for January and February. What is the beginning inventory of plastic for January? 2. Prepare a direct materials purchases budget for the months of January and February. 4. Direct Labor Budget: Upton Inc. makes air bags for use in original equipment automobile manufacturing. Planned production in units for the first three months of the coming year is: January 108,750 units February 98,750 units March 110,500 units Each air bar requires 0.1 direct labor hours of assembly. The average wage is $25 per hour. Required: Prepare a direct labor budget for the months of January, February, and March, as well as the total for the first quarter.5. Overhead Budget: Upton Inc. makes air bags for use in original equipment automobile manufacturing. Budgeted direct labor hours for the first three months of the coming year are: January 10,874 DLHs February 9,875 DLHs March 11,050 DLHs The variable overhead rate is $3.00 per direct labor hour. Fixed overhead is budgeted at $5,000 per month. Required: Prepare an overhead budget for the months of January, February, and March, as well as the total for the first quarter.5. Overhead Budget: Upton Inc. makes air bags for use in original equipment automobile manufacturing. Budgeted direct labor hours for the first three months of the coming year are: January 10,874 DLHs February 9,875 DLHs March 11,050 DLHs The variable overhead rate is $3.00 per direct labor hour. Fixed overhead is budgeted at $5,000 per month. Required: Prepare an overhead budget for the months of January, February, and March, as well as the total for the first quarter. 5. Overhead Budget: Upton Inc. makes air bags for use in original equipment automobile manufacturing. Budgeted direct labor hours for the first three months of the coming year are: January 10,874 DLHs February 9,875 DLHs March 11,050 DLHs The variable overhead rate is $3.00 per direct labor hour. Fixed overhead is budgeted at $5,000 per month. Required: Prepare an overhead budget for the months of January, February, and March, as well as the total for the first quarter.