1) Cahuilla Corporation predicts the following sales in units for the coming four months: April 240 May 280 June 300 July 240 Sales in units Each month's ending Finished Goods Inventory should be 40% of the next month's sales. March 31 finished goods inventory is 96 units. A finished unit requires five pounds of direct material B at a cost of $2.00 per pound. The March 31 Raw Materials Inventory has 200 pounds of B. Each month's ending Raw Materials Inventory should be 30% of the following month's production needs. 1). Prepare the production budget for May and June. 2) Prepare the raw material purchase budget for May and June. D8 A D EF B C Production Budget For period April May OR June 8 Next Month's Budgeted Sales 9 Ratio of Inventory to future sales 10 Budgeted Ending inventory (in units) 11 Add: Budget sales for the month 12 Total required Units for production 13 Less: Budgeted beginning Inventory 14 Units to be produced 15 16 17 18 19 20 Units to be produced 21 Material required per unit 22 Material needed for production 23 Budgeted ending inventory 24 Total material required 25 Less: Beginning Inventory 26 Material to be purchase 27 Purchase Price per unit 28 Total cost of material to be purchased 29 30 31 32 production + Fdit RE