units of sales 40 at $ 2 per unit for this month next month sales projected to be 30 ending inventory of finished goods need to be 10% of next month sales ending inventory of raw materials need to be 20 % of next month projected raw materials needs direct labor is .001 hour per unit at $ 8 per hour Prepare the following budgets 1 sales 2 production 3 direct materials purchases 4 direct labor