John, Inc. has projected sales of its product for the next 6 months as follows:

July 120 units

August                              270

September                         300

October                             240

November                           90

December                          210

The product sells for $100 per unit, variable expenses are $30 per unit, and fixed expenses are $1,500 per month. The finished product requires 3 units of raw material and 10 hours of direct labor. The company tries to maintain an ending inventory of finished goods equal to the next 2 months of sales.

A. Prepare a production budget for August, September, and October.

B. Prepare a direct labor hours budget for August, September, and October

C. Prepare direct material budget for August, September, and October