At the beginning of October, Comfy Cushions had 1,800 cushions and 11,500 pounds of raw materials on hand. Budgeted sales for the next three months are:

Month

Sales

October

9,000 cushions

November

11,000 cushions

December

14,000 cushions

Comfy Cushions wants to have sufficient raw materials on hand at the end of each month to meet 25 percent of the following month's production requirements and sufficient cushions on hand at the end of each month to meet 20 percent of the following month's budgeted sales. Five pounds of raw materials, at a standard cost of $0.90 per pound, are required to produce each cushion.

Required
a. Prepare a production budget for October and November.
Do not use a negative sign with your answers.

Comfy Cushions
Production Budget
For the Months of October and November
	October	November	December
Unit Sales	Answer	Answer	Answer
Desired ending inventory	Answer	Answer
Finished goods requirements	Answer	Answer
Less beginning inventory	Answer	Answer
Production requirements	Answer	Answer

b. Prepare a purchases budget in units and dollars for October.
Do not use a negative sign with your answers.

Comfy Cushions
Purchases Budget
For the Month of October
		October	November
Production requirements		Answer	Answer
Desired ending inventory		Answer
Raw materials requirements		Answer
Less beginning inventory		Answer
Purchase requirements (units)		Answer
Purchase requirements (in dollars)		Answer