Production, direct materials, and direct labor budgets Gerrad Manufacturing has projected sales of its product for the next six months as follows: January February 1120 units March 1,600 units April 1440 units May 640 units June 480 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 April Sales El Total units needed BA Units produced 0 0 0 0 0 March 0 0 0 0 0 0 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. 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 Required raw material units Cost of raw material purchases $ Units produced DLHS per unit Total hours Cost per DLH Cost of DL Check $ $ c. Prepare a direct labor budget (assuming a $12 per hour rate) for February, March, and April. February April 0 0 0 0$ OS 0 0$ March March 0 0 0 0$ 0$ 0 OS April 0 0 0 0 0 0 0