Which of the following statements are true? I. In a production budget, if the number of units in finished goods inventory at the end of the period is less than the number of units at the beginning of the period, then the expected number of units sold is less than the number of units to be produced during the period. II. When preparing a direct materials budget, beginning inventory for raw materials should be added to production needs, and desired ending inventory should be subtracted to determine the amount of raw materials to be purchased. III. In the merchandise purchases budget, the required purchases for a period can be determined by subtracting the beginning inventory from the budgeted cost of goods sold and desired ending inventory. Only Statement I is true. Statements I and II are true. Statements II and III are true. Only Statement III is true. None of the statements are true