Production and Purchases Budgets Drainage Solutions Culverts produces small culverts for water drainage under two-lane dirt roads. Budgeted unit sales for the next several months are: Month September . October . November.... December Sales 2,300 1,800 1,100 800 At the beginning of September, 575 units of finished goods were in inventory. During the final third of the year, as road construction declines, plans are to have an inventory of finished goods equal to 25 percent of the following month 's sales. Each unit of finished goods requires 600 pounds of raw materi- als at a cost of $5 per pound. Management wishes to maintain month-end inventories of raw materials equal to 50 percent of the following month's needs. Five hundred thousand pounds of raw materia were on hand at the start of September. Required a. Prepare a production budget for September, October. and November. b. Prepare a purchases budget in units and dollars for September and October. Production and Purchases Budgets Drainage Solutions Culverts produces small culverts for water drainage under two-lane dirt roads. Budgeted unit sales for the next several months are: Month September . October . November.... December Sales 2,300 1,800 1,100 800 At the beginning of September, 575 units of finished goods were in inventory. During the final third of the year, as road construction declines, plans are to have an inventory of finished goods equal to 25 percent of the following month 's sales. Each unit of finished goods requires 600 pounds of raw materi- als at a cost of $5 per pound. Management wishes to maintain month-end inventories of raw materials equal to 50 percent of the following month's needs. Five hundred thousand pounds of raw materia were on hand at the start of September. Required a. Prepare a production budget for September, October. and November. b. Prepare a purchases budget in units and dollars for September and October.