Production and Purchases Budgets At the beginning of October, Comfy Cushions had 2,200 cushions and 13,500 pounds of raw materials on hand. Budgeted sales for the next three months are:

Month	Sales
October	11,000 Cushions
November	13,000 Cushions
December	16,000 Cushions

Comfy Cushions wants to have sufficient raw materials on hand at the end of each month to meet 25 percent of the following month's production requirements and sufficient cushions on hand at the end of each month to meet 20 percent of the following month's budgeted sales. Five pounds of raw materials, at a standard cost of $0.90 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.

Great Cushions Production Budget for months October, November and December

Months

October

November

December

Unit Sales

Answer

Answer

Answer

Desired ending inventory

Answer

Answer

No answer needed here

Finished goods requirements

Answer

Answer

No answer needed here

Less beginning inventory

Answer

Answer

No answer needed here

Production requirements

Answer

Answer

No answer needed here

b. Prepare a purchases budget in units and dollars for October. Do not use a negative sign with your answers.

Great Cushions Purchases Budget for months October
Months	October	November
Production requirements	Answer	Answer
Desired ending inventory	Answer	No answer needed here
Raw materials requirements	Answer	No answer needed here
Less beginning inventory	Answer	No answer needed here
Purchase requirements (units)	Answer	No answer needed here
Purchase requirements (in dollars)	Answer	No answer needed here