Vaughn Towel Company completely stocked out of its cotton yarn for making towels in April (last month). So management is starting over, trying to build up an inventory of yarn while ensuring there is enough yarn on hand for the production group to catch up with orders. Phyllis is responsible for putting all operating budgets together to estimate operating income for May. Here is the information she has. May June July Budgeted sales in unit 6,100 6,000 5,900 Additional information: Budgeted selling price Target ending FG Inventory Beginning FG Inventory Target ending DM Inventory Beginning DM Inventory Budgeted DM usage and cost Budgeted DL usage and cost Budgeted Variable MOH costs Budgeted Fixed MOH costs Budgeted variable SG&A costs Budgeted fixed SG&A costs $6 per unit 15% of next month's sales volume 320 units, at a total cost of $1,250 (based on prior period costs) 20% of next month's production needs 0 25 yards per unit at a cost of $0.04 per yard 0.1 DL hours per unit at a cost of $15 per hour $0.50 per unit $6,600 total (including $500 of depreciation) $0.40 per unit sold $7,500 total (including $850 of depreciation) (a1) Prepare the sales budget for Vaughn Towel for the month of May. May Save for Later A A Attempts: 0 of 1 used Submit Answer (a2) Prepare the production budget for Vaughn Towel for the month of May. May Save for Later Attempts: 0 of 1 used Submit Answer Prepare the production budget for Vaughn Towel for the month of May. Beginning FG Inventory Budgeted Sales Volume Budgeted Units to be Produced Target Ending FG Inventory Total Units Needed : Save for Later May