Chips, Inc. is preparing the budget for its fiscal year ending on 30 June 2018 (FY2017). The company produces Widgets using the raw material, oximate polyethyl hydroxide (OPH). Three pounds of OPH are needed to produce each Widget. The market price of OPH varies but Chips expects the average price to be $2.80 per pound. Chips plans to sell 510,000 Widgets during FY2017. The table below shows the beginning inventories and planned ending inventories for OPH and Widgets Inventories OPH: Raw materials (Ibs.) Widgets: Finished goods (units) 1-Jul-17 30-Jun-18 40,000 44,000 66,000 41,000 Answers Determine the number of Widgets schedule to be produced in FY2017 What is the expected number of lbs. of OPH expected to be used in FY2017? How many lbs. of OPH should Chips budget to purchase? What is the purchases budget of OPH? What would the purchases budget of OPH be if sales were increased by 10%