Warood Company's sales budget projects unit sales of part CB78 of 10,000 units in January, 12,000 units in February, and 13,000 units in March. Each unit of part CB78 requires 3 pounds of materials, which cost $4 per pound. Warood Company desires its ending raw materials inventory to equal 30% of the next month's production requirements, and its ending finished goods inventory to equal 25% of the next month's expected unit sales. These goals were met at December 31, 2018. Instructions: Prepare a production budget for January and February 2019. Prepare a direct materials budget for January 2019.