1. Shirt Company manufactures and sells Hawaiian shirts. The marketing department expects to sell each shirt for $45 and estimates the following unit sales: June July August September October Sales (units) 850 800 750 650 400 The production department likes to keep 30% of next month's sales in its finished goods inventory. At the end of May, it had 255 shirts in stock. Each shirt requires 1.8 yards of fabric. The fabric costs $5.20 per yard. Shirt Co. likes to keep 40% of next month's production needs in inventory. At the end of May it had 601.2 yards of fabric. Each shirt takes 15 minutes to sew and employees are paid $10 per hour. A. C. Prepare a sales budget for the months June through October. Prepare a production budget for the months June through August. Prepare a direct materials budget for the months June through August. Prepare a direct labor budget for the months June through August