The Radco Company produces and sells pumpkin-sized Halloween product. Expected

sales in September are 1000 units. October sales are forecasted to be 1250 units. Selling

price per unit is $60. Three pounds of direct materials are budgeted per unit at a cost of

$4.00 per pound. Two direct labor-hours are budgeted per unit at $12.00 per hour.

Assume that target ending finished goods inventory is 120 units. Beginning finished

goods inventory is 90 units. Desired direct materials ending inventory equals 20% of the

materials required to produce next month's sales.

Required

Prepare the following budgets for September:

• a.Revenues Budget

b. Production Budget

c. Direct Materials Usage and Purchases Budget