Saved Help Sav Hansell Company's management wants to prepare budgets for one of its products, Duraflex, for July 2019. The firm sells the product for $84 per unit and has the following expected sales (in units) for these months in 2019: April May June 1,600 5 , 800 July 5,900 6 , 800 August September 7. 800 7. 200 The production process requires 4 pounds of Dura-1000 and 2 pounds of Flexplas. The firm's policy is to maintain an ending inventory each month equal to 10% of the following month's budgeted sales, but in no case less than 500 units. All materials inventories are to be maintained at 5% of the production needs for the next month, but not to exceed 1,000 pounds. The firm expects all inventories at the end of June to be within the guidelines. The purchases department expects the materials to cost $1.25 per pound and $5.00 per pound for Dura-1000 and Flexplas, respectively. The production process requires direct labor at two skill levels. The rate for labor at the K102 level is $50 per hour and $20 per hour for the K175 level. The K102 level can process one batch of duraflex per hour; each batch consists of 100 units. The manufacturing of Duraflex also requires one-tenth of an hour of K175 workers' time for each unit manufactured. Hansell Company expects its trial balance on June 30 to be as follows: HANSELL COMPANY Budgeted Trial Balance June 30, 2019 Debit Credit Cash 44 , 000 Accounts receivable 88 ,000 Allowance for bad debts 3 , 900 Inventory 28,000 Plant, property, and equipment 728,000 Accumulated depreciation 358, 400 Accounts payable 106 , 400 Wages and salaries payable 27,060 Note payable 225,000 Stockholders equity 167 , 300 Total $ 888 ,000 $ 888 ,000