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Problem 4 Required: From the information below prepare a production budget for the months July, August and September. Paul Co. has budgeted sales of

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Problem 4 Required: From the information below prepare a production budget for the months July, August and September. Paul Co. has budgeted sales of its product over the next four months as follows: July 50,000 August 40,000 September 70,000 October 60,000 Past experience has shown that end-of-month inventories must equal 10 percent of the next month's sales. The inventory at the end of June was 3,000 units. Problem 5 Required: From the information below prepare a materials purchases budget for the months October, November and December. Paul Co. produces a stuffed toy called "Paul the Parrot". Each Parrot takes five ounces of polyfiberfill. Paul Co. has budgeted production of Parrots for the next four months as follows. October 70,000 November 60,000 December 50,000 January 40,000 Inventory policy requires that sufficint polyfiberfill be in ending inventory to satisfy 20 percent of the following month's production needs. There was 40,000 ounces of polyfiberfill on hand to begin October.

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