Kittle Corporation has two products; AB and CD. The beginning and ending balances of finished goods and raw materials inventories are presented below.

	Products			Raw Materials
	AB	CD		X	Y
Beginning Inventory	12,000 units	6,500 units		120 kg	24,000 units
Target Ending Inventory	8,000 units	3,500 units		320 kg	18,000 units
Expected Sales	35,000 units	15,000 units

Each unit of AB requires the use of 15gr of X and 2 units of Y whereas each unit of CD requires the use of 20gr of X and 4 units of Y.

Throughout this year, company paid $12 for 1 kg of X and $14 for a unit of Y. However, it is projected that 1 kg of X will be sold in the market from $14/kg and each unit of Y from $16 next year.

1. Prepare the production budget. (10 pts)
2. Prepare the DM Purchase Budget. (15 pts)