Electro Company manufactures transmissions for electric cars. Management reports ending nished goods inventory for the first quarter at 119,000 units. The following unit sales are budgeted during the rest of the year: second quarter, 238,000 units; third quarter, 310,000 units; and fourth quarter, 312,000 units. Company policy calls for the ending nished goods inventory of a quarter to equal 50% of the next quarter's budgeted unit sales. Prepare a production budget for both the second and third quarters that shows the number of transmissions to manufacture. Next period budgeted sales units Desired ending inventory units Total required units MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $4 per pound and 0.7 direct labor hour at a rate of $14 per hour. Variable overhead is budgeted at a rate of $2 per direct labor hour. Budgeted fixed overhead is $11,000 per month. The company's policy is to end each month with direct materials inventory equal to 20% of the next month's direct materials requirement. At the end of August the company had 1,800 pounds of direct materials in inventory. The company's production budget reports the following. Production Budget September October November Units to produce 4,500 6,300 5,800 (1) Prepare direct materials budgets for September and October. (2) Prepare direct labor budgets for September and October. (3) Prepare factow overhead budgets for September and October. Complete this questlon by entering your answers In the tabs below. Required 1 Required 2 Required 3 Prepare direct materials budgets for September and October. Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Cost of direct materials purchases Required 2 >