It is expected that this problem will be complete using an Excel spreadsheet using formulas. Please see the Excel Tutorial that is available under the course home tab. The Hale Company finished their sales projections for the coming year. The company produces one product. Part of next year's sales projections are as follows:

 

	July	August	September	October	November
Projected Sales in units	100000	125000	156000	165000	185000

The budget committee has also compiled the following information on inventories:

 

	Raw materials	Work-in-Process	Finished Goods
Ending Balance, June	22,000 lbs	None	13,000 units
Desired ending levels (monthly)	5% of next month's production needs	None	12% of next month's sales

Engineering has developed the following standards upon which the production budgets will be developed:

 

Item	Standard
Materials usage	5 lbs per unit
Material price per pound	$1.50 per pound
Labor usage	0.4 hours per unit
Labor rate	$30 per hour
Machine hours	3 machine hours per unit

The Hale Company uses a modified allocation method for allocating overhead costs. The rates that will be used in the coming year are as follows:

 

Overhead item	Allocation rate
Utilities	$0.50 per machine hour
Inspection	$10 per unit produced
Factory supplies	$2 per unit produced
Depreciation	$35,000 per month
Supervision	$12,000 per month

Required:

Prepare the following production budgets for July, August, and September for the Hale Company:

1. Productionbudget