Note: This section is a continuation from Part A of the comprehensive problem. Be sure you have completed Part A before attemptind Part B, You may have to refer back to data presented in Part A and use answers from Part A when completing this section. Genuine Splce inc. began operations on January 1 of the current year. The company produces 8-ounce bottles of hand and body lotion called Elernal Beauty. The lotion is sold wholesale in 12 -boltle cases for $100 per case. There is a selling commission of $20 per case. The January direct matirials, direct labor, and factory overhead costs are as follows: Part 8 -August Budgets During luly of the current year, the management of Genuine Spice inc. asked the controller to prepare August mariufacturing and income statement budgets. Demand was expected to be 1,500 cases at $100 per case for August. Inventory planning information is provided as follows: Finished Goods Inventory: Materials Inventory: There was negligible work in process imventory assumed for either the beginning or end of the month: thus, nne was assumed. tn addition, there was no change in the cost per unit or estimated units per case operating data from Janwary. Required: 5. Prepare the August production budget. 6. Prepare the August direct materials purchases budget. Enter the unit price to the nearest cent. 7. Prepare the August direct labor cost budget. For hours required, round to nearest whole hour. For hourfy rate, enter to the nearest cent, if required. 8. Preoare the August factory overhead cost budoot. If an amount box dows not require an entry, leave it blank. 9. Prepare the August budgeted income statement, including selling expenses. DIRECT MATERIALS DIRECT LABOR FACTORY OVERHEAD \begin{tabular}{lcc} \hline & Cost Behavior & Total Cost \\ \hline Utilities & Mixed & $600 \\ Facility lease & Fixed & 14,000 \\ Equipment depreciation & Fixed & 4,300 \end{tabular} Part B-August Budgets During July of the current year, the management of Genuine Spice Inc. asked the controller to prepare August manufacturing and income statement budgets. Demand was expected to be 1,500 cases at $100 per case for August. Inventory planning information is provided as follows: Finished Goods Inventory: Materiais inventory: There was nepligible work in process inventory assumied for either the beginning or end of the month; thus, none was assumed. In addition. there was no change in the cost per unit or estimated units per case operating data from January. 5. Prepare the August production budget. 6. Prepare the August direct materials purchases budget. Enter the unit price to the nearest cent. 7. Prepare the August direct labor cost budget. For hours required, round to nearest whole hour. For hourly rate, enter to the nearest cent, if required. 8. Prepare the August factory overhead cost budget. If an amount box does not require an entry, leave it blank. Genuine Spice Inc. Factory Overhead Cost Budget For the Month Ended August 31 Canuina Snira Inr 9. Prepare the August budgeted income statement, including selling expenses: Genuine Spice Inc. Budoeted Income Statement For the Month Ended August 31