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Question - The Radco Company produces and sells pumpkin-sized Halloween product. Expected sales in September are 1000 units. October sales are forecasted to be 1250 units. Selling price per unit is $60. Three pounds of direct materials are budgeted per unit at a cost of $4.00 per pound. Two direct labor-hours are budgeted per unit at $12.00 per hour. Assume that target ending finished goods inventory is 120 units. Beginning finished goods inventory is 90 units. Desired direct materials ending inventory equals 20% of the materials required to produce next month's sales.
Required - Prepare the following budgets for September:
a. Revenues Budget
b. Production Budget
c. Direct Materials Usage and Purchases Budget
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