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Bea inv. 2 2. King Corporation has the following budgeted sales for the selected six-month period: Month Unit Sales June 3 X 15,000 45,000 July 20,000 60,000 August 35,000 65,000 20000X 0.20=4000 September 25,000 75,000 ble Desired end av Teoks at next month & I have to October 3 x 30,000 6,000 start at Junezols next month November 20,000 is July (20 pod There were 2000 units of finished goods inventory at the beginning of June. Plans are to have a finished goods inventory equal to 20% of the unit sales for the next month->35 ,20- 7000 Three kilograms of direct materials are required for each unit produced. Each kilogram of material costs $25. Ending direct materials inventory equals 30% of the needs for the next month. Direct materials inventory on June I was 5.000 kg. Required: A. (12 marks) Prepare production budgets in units for July, August, and September B. (18 marks) Prepare a purchases budget in kilograms and dollars for July, August, and September Sept 25,000 A. Production budgets Kings Corporation July Aug Anit sales 20,000 35000 Desired Ending Invi +7,ooor + 9000 Total needs 27,000 40.000 DOD Beg. Invo -Teco Total ecoduct 23,000 33.000 + 6000 31,000 -5,000 26,000 neer 82,000 comits at the end of 3 months