At the beginning of October, Comfy Cushions had 2,000 cushions and 12,500 pounds of raw materials on hand. Budgeted sales for the next three months are:

Month Sales

October 10,000 cushions

November 12,000 cushions

December 15,000 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 notuse a negative sign with your answers.

Comfy Cushions Production Budget For the Months of October and November

October November December

Unit Sales _____ _____ ______

Desired ending inventory _____ _____

Finished goods requirements ___ _____

Less beginning inventory _____ _____

Production requirements _____ _____

b. Prepare a purchases budget in for raw materials units and dollars for October.

Do notuse a negative sign with your answers.

Comfy Cushions Purchases Budget For the Month of October

October November

Production requirements ________ _______

Desired ending inventory ________

Raw materials requirements ________

Less beginning inventory _______

Purchase requirements (units) _____

Purchase requirements (in dollars)______