Question
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
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 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
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