The following data are provided for Finland Corporation:
(a) Sales: Sales through June 30, 20A, the first 6 months of the current year, are 24,000 units. Expected sales for the full year are 60,000 units. Actual sales in units for May and June and estimated unit sales for the next 4 months are as follows:
Units
May ................................. 4,000
June ................................. 4,000
July ................................... 5,000
August ............................... 6,000
September ........................... 7,000
October .............................. 7,000
(b) Direct materials: At each month end, Finland wants to have sufficient materials on hand to produce the next month's estimated sales. Data regarding materials are as follows:

(c) Direct labor:

(d) Factory overhead: The company produced 27,000 units during the 6-month period through June 30, 20A, and expects to produce 60,000 units during the year. The actual variable factory overhead costs incurred during this 6-month period are as follows. The controller believes that these costs will be incurred at the same rate during the remainder of 20A.

The fixed factory overhead costs incurred during the first 6 months of 20A amounted to $93,000. Fixed overhead costs are budgeted for the full year as follows:

(e) Finished goods inventory: The desired monthly ending finished goods inventory in units is 80% of the next month's estimated sales. There are 5,600 finished units in the June 30, 20A, inventory.
Required:
(1) Prepare the production budget for the third quarter ending September 30, 20A.
(2) Prepare the direct materials purchases budget for the third quarter.
(3) Prepare the direct labor budget for the third quarter.
(4) Prepare the factory overhead budget for the 6 months ending December 31, 20A, presenting two figures-for total variable and fixed overhead.

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Direct Material 101 211 Units of Material Required 6 4 Cost per Unit $2.40 3.60 1.20 Units in Inventory June 30, 20A 35,000 30,000 14,000 242wiainaw Process Forming . Assembly Hours per Unit .80 2.00 25 Hourly Labor Rate $8.00 5.50 6.00 inishing aRC Supplies Electricity.. Indirect labor. Other.. S 59,400 27,000 54,000 21.600 aa$162,000 Total variable factory overhead Supervision.n... Property tax Depreciation Other 60,000 7,200 86,400 32,400 $186,000 fixed factory overhead