Production and Purchases Budgets in Units At the end of business on June 30, the PE Rug Company had 35,000 square yards of rugs and 100,000 pounds of raw materials on hand. Budgeted sales for the third quarter are Month Sales 50.000 sa. yards 35.000 sa. yards September 42.000 sa. yards July August October 48.000 s9 yards The PE Rug Company wants to have sufficient square yards of finished product on hand at the end of each month to meet 60% of the following month's budgeted sales and sufficient pounds of raw materials to meet 40% of the following month's production requirements. Seven pounds of raw materials are required to produce one square yard of carpeting. Prepare a production budget for the months of july, August, and September and a purchases budget in units for the months of july and August. PE Rug Company Production Budget For the Months of July, August, & September July August September Budgeted production - s0. yards 36.000 - 39.200 45.600 - PE Rug Company Purchases Budget For the Months of July & August July August Purchases in pounds Check