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  3. fruit tea's data show the following information: n

Fruit Tea's data show the following information: New machinery will be added in October. This...

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Accounting

Fruit Tea's data show the following information:
New machinery will be added in October. This machine will reduce the labor required per unit
and increase the labor rate for those employees qualified to operate the machinery. Finished
goods inventory is required to be 20% of the next month's requirements. Direct material
requires 2.5 pounds per unit at a cost of $5.25 per pound. The ending inventory required for
direct materials is 20% of the next month's needs. In August, the beginning inventory is 3,750
units of finished goods and 13,125 pounds of materials.
For the first quarter ending in October prepare a:
a. Sales budget
b. Production budget
c. Direct materials budget
d. Direct labor budget
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