Dusty Company manufactures ceramic pottery. Budgeted sales for the first four months of the year are as follows:

Budgeted Sales (Units)_____________

January...........6,300

February ..........7,800

March...........8,500

April ...........8,800

The company wants to maintain a finished goods inventory of pots equal to 10 percent of the following month's sales. At the beginning of the year, 200 ceramic pots are on hand.

Information for material budget:

Each ceramic pot requires 5 pounds of material, at a cost of $1.65 per pound. Assume the company maintains an inventory of material equal to 10 percent of the next month's needs. At the beginning of the year, 2,331 pounds are on hand. Inventory of materials at March 31 is estimated to be 3,929 pounds.

Required:

Prepare a production budget, in units, for each of the first three months of the year and direct materials budget for the first three months of the year.