1. The budgeted sales in units for the next four months as follows:

July	7,200 units
August	5,400 units
September	6,800 units
October	7,000 units

1. Prepare the sales budget for the third quarter of the company knowing that each unit is sold for $40. (1.5pt)

2. Past experience has shown that the ending inventory for each month should be equal to 10% of the next month's sales in units. The inventory in the beginning of July was only 600 units.

Prepare the production budget for each month of the third quarter and for the quarter in total. (3pts)

3. Each unit produced requires 0.30 direct labor-hours and direct labor-hour workers are paid $10 per hour.

Construct the companys direct labor budget for the quarter, assuming that the direct labor workforce is adjusted each month to match the number of hours required to produce the forecasted number of units produced. (1.5pt)