Assume you are starting a new business involving the manufactureand sale of a new product. Raw materials costs are $45 per product.Direct labor costs are expected to be $25 per product,Manufacturing Overhead is expected to cost $18 per product. Youexpect to sell each product for $172. You plan to produce 120products next month and expect to sell 85 products. During thesecond month, you plan to produce 120 products but expect sales inthe month to be 110 products. During the third month you expect toproduce 120 products but sell 135 products Prepare a productionschedule (units & dollars), a raw materials and finished goodsinventory schedule (units & dollars), and the top part of anincome statement (sales, cost of goods sold and gross profit) forthe three months.
