Warmup Ltd produces outdoor gas fires for domestic use. The following information has been gathered so that a production budget, a direct materials budget and a direct labour budget for part of 2025 can be prepared.

The materials and labour requirements per fire are as follows.

Required

(a) Prepare a quarterly production budget, in units only, for the March, June and September quarters of 2025.

(b) Prepare a direct materials budget for the March and June quarters of 2023 in both units and dollars (round to nearest unit).

(c) Prepare a direct labour budget for the March and June quarters of 2025.

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Quantity Cost Stainless steel Gas cylinder 5 kilograms $12 per kilogram 1 $18. Moulding and welding Powder coating 2 hours 0.5 hour $22 per hour $20 per hour Management prefers a finished goods ending inventory for each quarter that equals 25% of expected sales for the next quarter. Also, the ending inventory balance of direct materials should equal 30% of the next quarter's production requirements. The inventory balances on 1 January 2025 are forecast as shown. Stainless steel 250 kilograms Gas cylinders Heaters 103 500 The forecast quarterly sales in units are as follows. March 2025 1 150 June 2025 1320 September 2025 680 December 2025 390