Your company is Denim Company Your company has created the following sales budget for the year. You are to use the information provided to create the following items. Production Budget, Direct Materials Budget, Direct Labor Budget and Budgeted Income Statement Denim Company Sales Budget For the Year Ended December 31, 2022 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Expected Sales In Units 1,030 1,440 1,830 1 220 Sales Price Per Unit 225 $ 225 $ 225 $ 225 Total Sales Revenue $ 231,750 $ 324,000 $ 411,750 $ 274,500 The company policy is to have the number of units is ending inventory to be equal to 20% of the following quarters expected sales. Assume that the previous years quarter 4 ending inventory followed the company policy and, quarter 1 of next year expected sales and units required for production will be: 1,150 Units Al Produce a Production Budget for year. Format given in Figure 7.8 of the text book Each unit requires the following material 6 Pounds per unit S 2.18 Cost per pound The company policy is to have: 25% of required materials of the subsequent quarter to be equal the amount of ending inventory of the current quarter. Assume that the previous years quarter 4 ending materials inventory was at company policy. Use the number given above for required units to be produced in quarter 1 of the following year. B) Produce a Direct Materials Budget for each quarter for the year. Format given in Figure 7.9 of text book. Each unit requires the following labor 5 Hours of labor per unit 18.26 Labor cost per hour C) Produce a Direct Labor Budget for each quarter for the year. Format given in figure 7 10 of text book. These numbers apply to the 4th quarter only Overhead applied to the product sold in 4th quarter amounted to: 30,360 Sales and administrative inc amounted to: 20,040 Uncollectible Expenses $.210 Interest Expense incurred in the 4th quarter amounted to: 960 income Tax Expense incurred in the 4th quarter amounted to: 1 201 D) Produce a Budgeted Income Statement for the 4ch quarter only NOTE: Cost of Goods Numbers based on sales not productionI'll Format given in figure 7 14 of text book