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Please show work Production and Purchases Budgets Rocky Mountain Culvert produces small culverts for water drainage under two dirt roads. Budgeted unit sales for the

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Production and Purchases Budgets Rocky Mountain Culvert produces small culverts for water drainage under two dirt roads. Budgeted unit sales for the next several months are: At the beginning of September, 200 units of finished goods were in inventory. During the final third of the year, as road construction declines, plans are to have an inventory of finished goods equal to 25 percent of the following month's sales. Each u of finished goods requires of raw materials at a cost of $5 per pound. Management wishes to maintain month-end inventories of raw materials equal to 50 percent of the following month's needs. Five hundred thousand pounds of materials were on hand at the start of September. a. Prepare a production budget for September, October, and November b. Prepare a purchases budget in units and dollars for September and October

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