Question 4 Not complete Marked out of 10.00 Flag question Production, direct materials, and direct labor budgets Gerrad Manufacturing has projected sales of its product for the next six months as follows: January 780 units February 1820 units March 2,600 units April 2340 units May 1040 units June 780 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 BI 0 0 0 0 Units produced 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. February March Required raw material units Cost of raw material purchases $ 0 0 $ 0 $ April 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 0 DLHs per unit 0 0 0 Total hours 0 0 0 Cost per DLH $ 0 $ 0 $ 0 Cost of DL $ 0 $ 0 $ 0