Production and Purchases Budgets

At the beginning of October, Comfy Cushions had $3,400$ cushions and $8,500$ pounds of raw materials on hand. Budgeted sales for the next three months are

Month Sales

October $11,000$ cushions

November $12,000$ cushions

December $10,000$ cushions

Comfy Cushions wants to have sufficient raw materials on hand at the end of each month to meet $20\%$ of the following month$$s production requirements and sufficient cushions on hand at the end of each month to meet $30\%$ of the following month$$s budgeted sales. Four pounds of raw materials, at a standard cost of $$1\mathrm{.}10$ per pound, are required to produce each cushion.

Required

a$.$ Prepare a production budget for October and November.

Do not use a negative sign with your answers.

Comfy Cushions

Production Budget

For the Months of October and November

October November December

Unit Sales Answer

Answer

Answer

Desired ending inventory Answer

Answer

Finished goods requirements Answer

Answer

Less beginning inventory Answer

Answer

Production requirements Answer

Answer

Cash Disbursement sale. Additionally, a monthly lease payment of $$10,000$ is paid for computer services. Sales revenue is forecast as follows:

$\backslash$table$[[$Month$,$Sales Revenue$],[$February$,$$$340,000$