Gasmania Pty Ltd produces patio heaters for household use. The following information has been gathered so that a production budget, a direct materials budget and a direct labour budget for part of 2017 can be prepared.

The materials and labour requirements per tank are as follows:

		Quantity		Cost
Stainless steel Gas cylinder Moulding and welding Powder coating		5 kilograms 1 2 hours 0.5 hour		$12 per kilogram  $18 $22 per hour $18 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 25% of the next quarter’s production requirements. The inventory balances on 1 January 2017 are forecast as:

Stainless steel Gas cylinders Heaters

250 kilograms 103 500

The forecast quarterly sales in units are:

March 2017 June 2017 September 2017 December 2017

950 1 120 480 212

Required

A. Prepare a quarterly production budget, in units only, for the March, June and September quarters of 2017.

B. Prepare a direct materials budget for the March and June quarters of 2017 in both units and dollars.

C. Prepare a direct labour budget for the March and June quarters of 2017.