Chippy Corporation has the following budgeted sales for the next six month period

MonthUnit Sales

January20,000

February25,000

March40,000

April50,000

May75,000

June95,000

There were 15,000 units of finished goods in inventory at the beginning of January.Plans are to have an inventory of finished goods products that equal 30 percent of the unit sales for the next month.

Two kilograms of materials are required for each unit produced.Target Inventory levels for materials are to be to 50 percent of the production needs for the next month.Each kilogram of materials costs $5.

a) make a production budget (in Units) for February, March, and April.

b) make a purchases budget for February and March in kilograms and total dollars for each of the two months.