QUESTION $4(24$ marks$).$

Delightal Corporation has the following sales budget for

the selected six$-$month period:

Company policy is to have an ending inventory of finished

product equal to $20$ percent of the sales in units for the next

month. Five pounds of material are required for each unit

produced. Each pound of material costs $$10.$ The ending

inventory level for material should equal $30$ percent of the

production needs for the next month.

Required:

Prepare a production budget in units for October,

November, and December.

Prepare a material purchases budget in pounds and

dollars for October, November, and December.