Lubriderm Corporation has the following budgeted unit sales for the next six-month period:

MonthUnit Sales

June90,000

July120,000

August210,000

September150,000

October180,000

November120,000

There were 30,000 units of finished goods in inventory at the beginning of June. Plans are to have an inventory of finished products that equal 20% of the unit sales for the next month.

Five pounds of materials are required for each unit produced. Each pound of material costs $8. Inventory levels for materials are equal to 30% of the needs for the next month. Materials inventory on June 1 was 15,000 pounds.

Required: (40 points)

a.Prepare production budgets in units for July, August, and September.

b.Prepare purchases budget in pounds for July, August, and September, and give total purchases in both pounds and dollars for each month.