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Toduction and Furchases budgetsAt the beginning of October, Comfy Cushions had 1,600 cushions and 10,500pounds of raw materials on hand. Budgeted sales for the next
Toduction and Furchases budgetsAt the beginning of October, Comfy Cushions had 1,600 cushions and 10,500pounds of raw materials on hand. Budgeted sales for the next three months are:MonthSalesOctober8,000 cushionsNovember10,000 cushionsDecember 13,000 cushionsComfy Cushions wants to have sufficient raw materials on hand at the end ofeach month to meet 25 percent of the following month's production requirementsand sufficient cushions on hand at the end of each month to meet 20 percent ofthe following month's budgeted sales. Five pounds of raw materials, at astandard cost of $0.90 per pound, are required to produce each cushion.
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