Pastorini Company produces a number of pasta products, including egg noodles. Each 10-
ounce package contains 3 ounces of pasteurized eggs, which costs $0.08 per ounce, and 9 ounces of semolina flour costing $0.05 per ounce. Pastorini has budgeted production of egg noodles for the next four months as follows:

Inventory policy requires that sufficient eggs be in ending monthly inventory to satisfy 5%
of the following month's production needs; and sufficient flour be in inventory to satisfy 10% of the following month's production needs. Inventory of eggs and flour at the begin¬
ning of October equals exactly the amount needed to satisfy the inventory policy.
Each package of egg noodles produced, requires (on average) 0.01 direct labor hours.
The average cost of direct labor is $10.50 per hour.
Required:
1. Prepare a direct materials purchases budget of eggs for the last quarter of the year show¬
ing purchases in units and in dollars for each month and for the quarter in total.
2. Prepare a direct materials purchases budget of flour for the last quarter of the year showing purchases in units and in dollars for each month and for the quarter in total.
3. Prepare a direct labor budget for the last quarter of the year showing the hours needed and the direct labor cost for each month and for the quarter in total.

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Units October 400,000 November 800,000 December 500,000 January 600,000