Production, direct materials, and direct labor budget The Sales Department of Maximo In...

Production, direct materials, and direct labor budget

The Sales Department of Maximo Inc. has forecast sales for May 2013 to be 40,000 units. Additional information follows:

Finished goods inventory, May 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000 units

Finished goods inventory, May 31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000 units

Materials used in production:

Prepare the following:

a. A production budget for May.

b. A direct materials budget for May.

c. A direct labor budget for May.