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:

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

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:
Production budget
Direct Material Purchase Budget
Direct Labor Budget
Overhead Budget
Cost of Goods Manufactured Budget For the Quarter

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November August September October July Projected Sales in units 100,000 156,000 125,000 165,000 185,000 Raw materials Work-in- Finished Goods Process Ending Balance, June 22,000 1bs None 13,000 units 12% of next month's Desired ending levels 5% of next month's None (monthly) production needs sales