ABC Inc. has compiled the following data in order to put together their first quarter operating budget for 20XX:

	January	February	March	April
Sales (units)	50,000	55,000	40,000	30,000

Additional information:

ABC sells each unit for $200.

Company policy is to have 30% of next months sales (in units) in ending finished goods inventory. This policy was met in December.

Company policy is to have 25% of next months production needs in ending raw materials inventory. The production needs for April is 120,000. This policy was met in December.

It takes four pounds of material to produce each unit and the cost is $5.00/pound.

Required:

1. Prepare a sales budget for the January, February and March and for the first quarter in total.

2. Prepare a production budget for January, February and March and for the first quarter in total.

3. Prepare a direct materials purchases budget for January, February and March and for the first quarter in total.