Part I

(1) Is there a proper order for preparing Operating Budgets? If so, please explain what that order should be and why the proper order matters.

(2) What are the three major objectives of budgeting and how can technology be used to meet those objectives more effectively? Please be specific in your answer.

Part II

Walman Company has budgeted to produce 44,000 units of Product Y for March 20Y9. To make one unit of finished product Y, three pounds of raw material are required. Actual beginning and desired ending inventories of raw material are as follows:

3/1/20Y9 100,000 pounds (Beginning)

3/31/20Y9 110,000 pounds (Desired Ending)

How many pounds of raw material is Walman planning to purchase? Please prepare a purchases budget for the raw material.