King corporation has the following budgeted sales for the selected six-month period:

month: Unit sales:

June 15,000

July 20,000

august 35,000

September 25,000

October 30,000

November 20,000

There were 7,500 units of finished goods inventory at the beginning of June. Plans are to have a finished goods inventory equal to 20% of the unit sales for the next month.

Three kilograms of direct materials are required for each unit produced. Each kilogram of material costs $25. Ending direct materials inventory equals 30% of the needs for the next month. Direct materials inventory on June 1 was 5,000 kg.

Required:

A. prepare production budgets in units for July, august and september

B. prepare purchases budget in kilograms and dollars for July, August and September