Gertrude Products expects the following sales of its single product:

$\backslash$table$[[,$Units$],[$June$,6,280],[$July$,6,780],[$August$,7,480],[$September$,8,080],[$October$,9,080]]$

Required

Gertrude has an ending finished goods inventory policy of $10\%$ of the next month's sales needs. Each unit requires $5$ pounds of Chemical A and $14$ pounds of Chemical B$.$ July $1$ materials inventory includes $8,600$ pounds of Chemical A and $76,000$ 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 Products for the quarter ending September $30.$

$\backslash$table$[[\backslash$table$[[$Gertrude Products$],[$Production Budget$],[$For the Quarter Ending September $30]]],[$Budgeted unit sales,July,August,September,Total,,$],[$Plus: Ending finished goods inventory,$6,780,7,480,8,080,22,340,,],[$Less: Beginning finished goods inventory,$748,808,908,908,,],[$Budgeted production $($units$),,748,808,808,,]]$

b$.$ Prepare a direct materials purchases budget for Chemical A for the quarter ending September $30.$ Assume a desired ending inventory for Chemical $A$ of $9,100$ pounds at September $30,$ and a constant unit cost of $$2\mathrm{.}70$ per pound Note: Deductible answers must be indicated with a minus sign.

$\backslash$table$[[$Budgeted production $($units$),\backslash$table$[[$Gertrude Products$],[$Direct Materials Purchases Budget $($Chemical A$)],[$For the Quarter Ending Soptomber $30]],$September,Total$],[$July$,,$Augu,$],[,,7,540,,,8,180,,,],[$Direct materials requirements per unit,$5,$pounds,$5,$pounds,,$5p,$pounds,$5,$pounds$],[$Total direct material needed,,,$37,700,,,40,900,,,],[$Plus: Ending inventory,$7,540,,8,180,,,9,100,,,],[$Less: Beginning inventory,,,,,,,,,$],[$Total purchases of Chemical A$,34,940,,38,340,,,41,820,,,],[$Cost of Chemical A $($per pound$),2\mathrm{.}70,,2\mathrm{.}70,,$$$,2\mathrm{.}70,,2\mathrm{.}70,],[$Budgeted cost of Chemical A purchases,,,$$,103,518,,$$$,112,914,,,$