Here is the problem: Hoyce Corporation prepares monthly operating and financial budgets. The operating budgets for June and July are based on the following data: Units Produced Units Sold June 400,000 360,000 July 360,000 400,000 All sales are at $30 per unit. Direct material, direct labor, and variable manufacturing overhead are estimated at $3. $6, and $3 per unit, respectively. Total fixed manufacturing overhead is budgeted at $1,080,000 per month. Monthly selling and administrative expenses are budgeted at $1.200.000 plus 10% of sales, while income taxes are budgeted at 35% of income before taxes. The inventory at June 1 consists of 200,000 units with a cost of $17.10 each Required: A. Prepare monthly budget estimates of cost of goods sold assuming the FIFO inventory procedure is used. B. Prepare planned operating budgets for June and July. A Hoyce Corporation Planned Production and Cost of Goods Sold For June and July June 400,000 July 360,000 Planned production (units) Beginning inventory-- June 1: Beginning inventory--July 1: Planned production costs: Materials Direct labor Variable overhead Fixed overhead Total production costs Goods available for sale Ending inventory-- June 30: Ending inventory-- July 31: Cost of goods sold B Hoyce Corporation Planned Operating Budgets For June and July June July Sales Cost of goods sold Gross margin Selling and admin expenses Income before taxes Less: Income taxes Net income