Exercise 10.30 Sarasota Manufacturing has projected sales of its product for the next six months as follows: January 60 units February 90 units March 100 units April 120 units May 50 units June 110 units The product sells for $200, variable expenses are $140 per unit, and fixed expenses are $1,500 per month. The finished product requires 4 units of raw material and 10 hours of direct labour. The company tries to maintain an ending inventory of finished goods equal to the next 2 months of sales and an ending inventory of raw materials equal to half of the current month's usage. Your answer partially correct. Try again. Prepare a production budget for February, March, and April. February March April Planned sales 901 100 120|| Desired ending inventory 220 170 160 Planned sales 100 120 Desired ending inventory 220 1701 160 Planned beginning inventory mi Production requirements Total units needed Planned beginning inventory Production requirements Total units needed Desired ending Work-in-process inventory Planned sales Desired beginning Work-in-process inventory Desired ending inventory February, March, and April. February March April Planned usage 480 200 440 Your answer is partially correct. Try again. Prepare a forecast of the units of direct materials required for February, March, and April. February March April Planned usage 480 200 440 Desired ending Work-in-Process inventory 240 1001 220 Desired beginning Work-in-Process inventory 200 240 100 Material acquisitions 520 60 560 Total units needed 520 60 560 Planned beginning inventory Desired ending inventory Desired beginning Work-in-process inventory Material acquisitions Planned usage Desired ending Work-in-process inventory Total units needed April. March April x Your answer is incorrect. Try again. Prepare a direct labour hours budget for February, March, and April. February March Labour hours needed 2200 April 1700 1600