E$8-21($Static$)$ Preparing Production and Direct Materials Purchases Budgets $[$LO $8-3$b$,$ c$]$

Galactic Incomprated marlufacfures flying drone toys. Sales units for January, February, March, Aprid, and May were $300,280,352,312$ and $380$ respectively.

Required:

$1.$ The company's pollicy for ending finished goods is $25$ percent of next morith's sales. Determine production budget for the first quarter.

$2.$ The drone toy includes $\backslash (2$ L $\backslash )$ LED lights, which cost $\backslash (\backslash$$ $15\backslash )$ each. The company requires ending direct materials to be $20$ percent of next month's materials requirement. Determine direct materials purchases budget with respect to LED lights for the first quatte:

Answer is complete but not entirely correct.

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The drone toy includes $2$ LED lights, which cost $\backslash (\backslash$$ $15\backslash )$ each. The company requires ending direct materials to be $20$ percent of next month's materials requirement. Determine direct materials purchases budget with respect to LED lights for the first quartes.

Note: Do mot round intermediate calculations.