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Question 1: A firm has provided a sales budget for the next 4 months. It bases its production budget on the sales budget, and has a policy that each month's ending inventory of finished product must be equal to 25% of the following month's sales needs. The direct materials purchase budget is based on the production budget. The firm's policy for each month's ending inventory of raw materials is that they must be equal to 10% of the following month's production needs for raw materials. Using the data provided, the company can prepare direct materials purchases budgets for how many months?
Option 1: 1
Option 2: 2
Option 3: 3
Option 4: 4
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