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Arnold Co. budgeted to sell 11,500 units of Gizmo in September. Production of one unit of Gizmo requires two (2) pounds of aluminum and four

Arnold Co. budgeted to sell 11,500 units of Gizmo in September. Production of one unit of Gizmo requires two (2) pounds of aluminum and four (4) pounds of steel powder. The beginning inventory and the desired ending inventory are as follows:

Beginning Inventory

Desired Ending Inventory

Gizmo

2,400

units

3,300

units

Aluminum

1,500

pounds

1,700

pounds

Steel powder

1,300

pounds

1,000

pounds

a) Production budget: How many units of Gizmo should Arnold plan to make in September?

b) Direct materials production budget, Aluminum and Steel Powder: Ignore your answer in (a). If Arnold plans to manufacture 15,000 units of Gizmo in September, how much Aluminum and how much Steel powder in pounds only does Arnold need for production in September?

c) Direct materials purchases budget, Aluminum: How many pounds of Aluminum does Arnold Co. need to purchase during September if Arnold plans to manufacture 15,000 units of Gizmo in September?

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