Fruit Tea's data show the following information:| | Aug. | Sept. | Oct. | Nov. | Dec. ||----------------|--------|--------|--------|--------|--------|| Estimated sales (units) | 25,000 | 25,000 | 27,000 | 27,500 | 28,000 || Sales price per unit | $31 | $31 | $31 | $31 | $31 || Direct labor per unit | $1.75 | $1.75 | $1.50 | $1.50 | $1.50 || Labor rate per hour | $21 | $21 | $24 | $24 | $24 |**Additional Information:**New machinery will be added in October. This machine will reduce the labor required per unit and increase the labor rate for those employees qualified to operate the machinery. Finished goods inventory is required to be 20% of the next month's requirements. Direct material requires 2.5 pounds per unit at a cost of $5 per pound. The ending inventory required for direct materials is 20% of the next month's needs. In August, the beginning inventory is 3,750 units of finished goods and 13,125 pounds of materials.**For the first quarter ending in October, prepare the following:**a. Sales budget b. Production budget c. Direct materials budget d. Direct labor budget

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Answered: 1. Fruit Tea's data show the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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