22. LO.3 (Production, direct materials, and direct labor budgets) Gerrad Manufacturing has projected sales of its product for the next six months as follows: January 300 units February 700 units March 1,000 units April 900 units May 400 units June 300 units The finished product requires 3 pounds of raw material and 10 hours of direct labor. Gerrad tries to maintain a Finished Goods ending inventory equal to the next two months of sales and a Raw Material ending inventory equal to one-half of the current month?s production needs. January?s beginning inventories are expected to conform to company policy. a. Prepare a production budget for February, March, and April. b. Prepare a forecast of the units and cost of raw material that will be required for February, March, and April. Th e expected cost per pound of raw material is expected to be $2 in February, $2.30 in March, and $2.40 in April. c. Prepare a direct labor budget (assuming a $12 per hour rate) for February, March, and April.

22. LO.3 (Production, direct materials, and direct labor budgets) Gerrad Manufacturing has projected sales of its product for the next six months as follows: January February March April May June 300 units 700 units 1,000 units 900 units 400 units 300 units The finished product requires 3 pounds of raw material and 10 hours of direct labor. Gerrad tries to maintain a Finished Goods ending inventory equal to the next two months of sales and a Raw Material ending inventory equal to one-half of the current month's production needs. January's beginning inventories are expected to conform to company policy. a. Prepare a production budget for February, March, and April. b. Prepare a forecast of the units and cost of raw material that will be required for February, March, and April. The expected cost per pound of raw material is expected to be $2 in February, $2.30 in March, and $2.40 in April. c. Prepare a direct labor budget (assuming a $12 per hour rate) for February, March, and April