Part #1: X Company anticipates having 4,250 units of finished goods inventory on hand on April 1^st. Assume X Company has sales budget volumes of units to be sold of 20,500 and 19,000 and 25,000 and 25,500 units for the upcoming months of April, May, June, and July. Prepare a Production Budget with columns for April, May, June and Total 2^nd Quarter assuming the firm desires ending inventories of 25 percent of the next months budgeted sales volume.

Part #2: Y Company anticipates having 1,480 gallons of its raw materials at the beginning of May. The product manufactured by Y Company takes 1.4 gallons of raw material to make one finished good item. The company desires ending inventory of raw materials to be 15 percent of gallons needed for production for the next month. The expected cost per gallon of raw materials for the foreseeable future is $3.50 per gallon. The latest production budget for the company shows that units of finished goods to be manufactured for May and June and July will be 8,760 and 8,200 and 9,400 respectively. Prepare a Direct Materials Purchases Budget with columns for May and June only.