Production, direct materials, and direct labor budgets Gerrad Manufacturing has projected sales of its product for the next six months as follows: January 720 units February 1680 units March 2,400 units April 2160 units May 960 units June 720 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. Note: Use a negative sign in your schedule to indicate that an amount is subtracted. February March April Sales 0 0 0 0 0 0 Total units needed 0 0 0 BI 0 0 0 Units produced 0 0 0 0 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. February March April Required raw material units 0 0 Cost of raw material purchases $ 0 $ 0 $ 0 C. Prepare a direct labor budget (assuming a $12 per hour rate) for February, March, and April. February March April Units produced 0 0 DLHS per unit 0 Total hours 0 0 0 Cost per DLH $ 0 $ $ 0 $ $ 0 Cost of DL $ 0 $ 0 $ 0 0 0 0