Preparing production budget and direct labor budget J. Reutlinger Manufacturing Co. for...

Preparing production budget and direct labor budget

J. Reutlinger Manufacturing Co. forecast October sales to be 45,000 units. Additional information follows:

Finished goods inventory, October 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000 units

Finished goods inventory desired, October 31 . . . . . . . . . . . . . . . . . . . . . 4,000 units

Direct laborers earn: Cutting, $14 per hour; Assembly, $12 per hour.

Prepare the following:

a. A production budget for October.

b. A direct labor budget for October.