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Production and Purchases Budgets At the beginning of October, Comfy Cushions had 2,000 cushions and 11,000 pounds of raw materials on hand. Budgeted sales for
Production and Purchases Budgets At the beginning of October, Comfy Cushions had 2,000 cushions and 11,000 pounds of raw materials on hand. Budgeted sales for the next three months are: Month Sales October 10,000 cushions November 9,000 cushions December 12,000 cushions Comfy Cushions wants to have sufficient raw materials on hand at the end of each month to meet 20 percent of the following month's production requirements. It also wants sufficient cushions on hand at the end of each month to meet 30 percent of the following month's budgeted sales. Six pounds of raw materials, at a standard cost of $1.10 per pound, are required to produce each cushion. What is the budgeted purchases of raw materials in dollars for the month of October? A. $60,698 B. $65,080 C.$55,180 D. $71,588 E. None of these choices
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