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Lydia Company manufactures a single product. It keeps its inventory of finished goods at twice the coming month's budgeted sales and inventory of raw materials at 150% of the coming month's budgeted production. Each unit of product requires five pounds of materials, which cost P3 per pound. The sales budget is, in units: May, 10,000; June, 12,400; July, 12,600; August, 13,200.
Required:
Question 1. Compute the budgeted production for June.
Question 2. Compute the budgeted production for July.
Question 3. Compute budgeted material purchases for June in pounds and pesos.
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