35. Production and Purchases Budgets LO4 Advance Drainage Systems produces thermoplastic corrugated pipe. Assume budgeted unit sales for Advance Drainage one of its products (a 12 " by 20 -ft pipe) over the next several months are Systems, Inc. (WMS) At the beginning of September, 850 units of finished goods were in inventory. During the final third of the year, as road construction declines, plans are to have an inventory of finished goods equal to 30% of the following month's sales pg. 22-30 ished goods requires 70 pounds of raw materials at a cost of $1.50 per pound. Managu.n.. ..unw maintain month-end inventories of raw materials equal to 40% of the following month's needs. Sixty thousand pounds of raw materials were on hand at the start of September. Required a. Prepare a production budget for September, October, and November. b. Prepare a purchases budget in units and dollars for September and October