Question 2(15 Marks) A sales budget is given below for one of the products manufactured by the OMI Co. January February March 25.000 units 40,000 units o0 65.000 units April May June 45,000 units 35.000 units 30,000 units The inventory of finished goods at the end of each month must equal 20 % of the next month's sales. However, on December 31, the finished goods inventory totalled only 4,000 units. Each unit of product requires three kilograms of specialized material. Since the production of this specialized material by OMI's suppliers is sometimes irregular, the company has a policy of maintaining production needs. This requirement had been met on January 1 of the current year. an ending inventory at the end of each month equal to 30 % of the next month's Required: Prepare a budget showing the quantity of material to be purchased each month for January, February, and March, and in total for the quarter. Note:( A Production Schedule is required for purchase schedule) Production Budget(5 Marks) 4 00419 January February April March Budgeted Sales Add COO T loo0 2O00 Less: Beginning Inventory Units to be Produced 4 00o 22,00 Direct Materials Budget(10 Marks) Quarter March February January Units to be Produced Kg per unit 136500 f450 771 000 fotss Add: Desired Ending 13650 8400 Inventory besinies Tny Required Purchases 44s150 S0459