Meow Company produces kitty litter in five pound bags. It takes five pounds of diatomaceous earth to make one bag of kitty litter. The raw materials cost fifty cents per pound. The following is the sales projection for the next six months:

January - 10,000

February - 12,000

March - 11,000

April - 13,000

May - 14,000

June - 13,000

The company wants to have fifty percent of the next months sales on-hand in inventory at the end of the previous month. Management expects to have 5,000 on-hand at the beginning of January.

Management wants to have all of the next months raw material requirements on-hand at the end of the month. Management expects to have 40,000 units on hand at the beginning of January.

1. Prepare a production budget for January, February, March , April, and May.
2. Prepare a raw materials budget in units for January, February, March, and April.
3. Prepare a raw materials budget in dollars for January, February, March, and April.