30 Dec Refer to Exercises 7-3 and 7-4 in your textbook an
Refer to Exercises 7-3 and 7-4 in your textbook and answer the questions that follow. Your response should be 2 to 3 pages long, including attachments. Please add references for used source.Exercise 7-3,Manufacturing:Production budgetP1Hospitable Co. provides the following sales forecast for the next four months:April May June JulySales (units) . . . . . . . . 500 580 540 620The company wants to end each month with ending finished goods inventory equal to 25% of nextmonth’s sales. Finished goods inventory on April 1 is 190 units. Assume July’s budgeted production is 540units. Prepare a production budget for the months of April, May, and June.Directmaterials budgetRefer to the information in Exercise 7-3. In addition, each finished unit requires five pounds of raw materialsand the company wants to end each month with raw materials inventory equal to 30% of next month’sproduction needs. Beginning raw materials inventory for April was 663 pounds. Assume direct materialscost $4 per pound. Prepare a direct materials budget for April, May, and June.Please see the screenshot attached!