Production and Purchases Budgets Drainage Solutions Culverts produces small culverts for water drainage under two-lane dirt roads. Budgeted unit sales for the next several months are: Month Sales September 2.400 October 1,900 November 1,200 December 900 Support At the beginning of September, 600 units of finished goods were in inventory. During the final third of the year, as road construction declines, plans are to have an inventory of finished goods equal to 25 percent of the following month's sales. Each unit of finished goods requires 600 pounds of raw materials at a cost of $5 per pound. Management wishes to maintain month-end inventories of raw materials equal to 50 percent of the following month's needs. Five hundred thousand pounds of raw materials were on hand at the start of September Required a. Prepare a production budget for September, October, and November. Do not use a negative sign with your answers. Drainage Solutions Culverts Production Budget For the Months of September, October, and November Sept. Oct. Nov. Budgeted sales Plus desired ending Inventory Total Inventory requirements Less beginning inventory Budgeted production Dec b. Prepare a purchases budget in units and dollars for September and October Do not use a negative sign with your answers. 0 0 0 Total inventory requirements Less beginning inventory Budgeted production b. Prepare a purchases budget in units and dollars for September and October. Do not use a negative sign with your answers. Drainage Solutions Culverts Purchases Budget For the Months of September and October Sept. Oct. Nov. Units (in pounds): Production requirements Plus desired ending inventory Total inventory needs Less beginning inventory 500,000 Budgeted purchases in pounds Dollars: Budgeted purchases: Check