WOOLY RUG COMPANY At the end of business on June 30 2009 , the Wooly Rug Company had 100 000 square yards of rugs and 400 000 pounds of raw materials on hand . Budgeted sales for the third quarter of 2009 are Month Budgeted Sales of Rugs July 200,000 square yards Augus 80,000 square yard September 150 000 square yards October 60,000 square yard The Wooly Rug Company wants to have sufficient square yards of finished rugs on hand at the end of each month to meet 40 percent of the following month's budgeted sales and sufficient pounds of raw materials to meet 30 percent of the following months production requirements . Five pounds of raw materials are required to produce one square yard of carpeting each pound costs $6 . Compute the following Square yards of rugs to be produced in July Dollar value of purchases of raw materials in July