Gertrude Products expects the following sales of its single product:

	Units
July	6,300
August	6,900
September	7,400
October	8,200
November	9,500

Gertrude desires an ending finished goods inventory to be equal to 20% of the next month’s sales needs. July 1 inventory is projected to be 1,260 units. Each unit requires 8 pounds of Chemical A and 16 pounds of Chemical B. July 1 materials inventory includes 10,272 pounds of Chemical A and 102,720 pounds of Chemical B. Gertrude desires to maintain a Chemical A inventory equal to 20% of next month’s production needs and a Chemical B inventory equal to 100% of next month’s production needs.

a. Prepare a production budget for Gertrude for as many months as is possible.

	July	August	September	October	November
Sales
Ending Inv.
Beginning Inv.
Production

b. Prepare a raw materials purchases budget for both Chemical A and Chemical B for the months of July through September.

Chemical A	July	August	September	October
Production
Raw Matereials/ Unit (Pounds)
Chemical A Needs
Ending Inv.
Beginning Inv.
Purchases of A

Chemical B	July	August	September	October
Production
Raw Materials/ Unit (Pounds)
Chemical B Needs
Ending Inv.
Beginning Inv.
Purchases of B