Production, direct materials, and direct labor budgets

Gerrad Manufacturing has projected sales of its product for the next six months as follows:

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.

Note: Use a negative sign in your schedule to indicate that an amount is subtracted.

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\mathrm{.}30$ in March,

and $$2\mathrm{.}40$ in April.

c$.$ Prepare a direct labor budget $($assuming a $$12$ per hour rate$)$ for February, March, and April.