At the beginning of October, Comfy Cushions had $3,400$ cushions and $8,500$ pounds of raw materials on hand. Budgeted sales for the next three

months are

Comfy Cushions wants to have sufficient raw materials on hand at the end of each month to meet $20\%$ of the following month's production

requirements and sufficient cushions on hand at the end of each month to meet $30\%$ of the following month's budgeted sales. Four pounds of raw

materials, at a standard cost of $$1\mathrm{.}10$ 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

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

Do not use a negative sign with your answers.At the beginning of October, Comfy Cushions had $3,400$ cushions and $8,500$ pounds of raw materials on hand. Budgeted sales for the next three months are

Month Sales

October $11,000$ cushions

November $12,000$ cushions

December $10,000$ cushions

Comfy Cushions wants to have sufficient raw materials on hand at the end of each month to meet $20\%$ of the following month$$s production requirements and sufficient cushions on hand at the end of each month to meet $30\%$ of the following month$$s budgeted sales. Four pounds of raw materials, at a standard cost of $$1\mathrm{.}10$ 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

$11,000$

Answer

$12,000$

Answer

$10,000$

Desired ending inventory Answer

$3,600$

Answer

$3,000$

Finished goods requirements Answer

$14,600$

Answer

$15,000$

Less beginning inventory Answer

$3,400$

Answer

$3,600$

Production requirements Answer

$11,200$

Answer

$11,400$

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