Baylor Products expects the following sales of its single product:

August, 25,000 units

September, 24,000 units

October, 22,000 units

November, 20,000 units

December, 17,500 units

1. Baylor desires an ending finished goods inventory to be equal to 30% of the next month's sales needs. Each finished unit requires 2 pounds of component X which costs $3 per pound. Baylor desires to maintain a component X inventory equal to 10% of next month's production needs. a. Prepare a production budget for Baylor for as many months as is possible. b. Prepare a direct raw materials purchases budget for Component X for the months of August - October.

Refer to the production budget in Problem 8.

Each finished unit requires 11 pounds of component Z which costs $8.00 per pound. Baylor desires to maintain a component Z inventory equal to 70% of next month's production needs.

Required 2. Prepare a direct raw materials purchases budget for Component Z for the months of August - October.