Production and Purchases Budgets At the beginning of October, Comfy Cushions had 2,400 cushions and 14,500 pounds of raw materials on hand. Budgeted sales for the next three months are: Month Sales October 12,000 cushions November 14,000 cushions December 17,000 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. Comfy Cushions Production Budget For the Months of October and November October November December Unit Sales 12,000 14,000 17,000 Desired ending inventory 2,800 3,400 Finished goods requirements 14,800 17,400 Less beginning inventory 2,400 2,800 Production requirements 12,400 14,600 b. Prepare a purchases budget in units and dollars for October. Do not use a negative sign with your answers. Comfy Cushions Purchases Budget For the Month of October October November Production requirements 14,800 x 14,000 x Desired ending inventory 2,800 x Raw materials requirements 0 x Less beginning inventory 0 x Purchase requirements (units) 0 X 0 x Purchase requirements (in dollars) $