Reference no: EM132515342

At the beginning of October, Comfy Cushions had 2,000 cushions and 12,500 pounds of raw materials on hand. Budgeted sales for the next three months are:

Month            Sales

October       10,000 cushions

November  12,000 cushions

December  15,000 cushions

• Comfy Cushions wants to have sufficient raw materials on hand at the end of each month to meet 25 percent of the following month's production requirements and sufficient cushions on hand at the end of each month to meet 20 percent of the following month's budgeted sales. Five pounds of raw materials, at a standard cost of $0.90 per pound, are required to produce each cushion.

Required

Question a. Prepare a production budget for October and November.

Do not use a negative sign with your answers.

• Comfy Cushions Production Budget For the Months of October and November

October November December

Unit Sales _____ _____ ______

Desired ending inventory _____ _____

Finished goods requirements ___ _____

Less beginning inventory _____ _____

Production requirements _____ _____

Question b. Prepare a purchases budget in for raw materials units and dollars for October.

Do not use a negative sign with your answers.

• Comfy Cushions Purchases Budget For the Month of October

October November

Production requirements ________ _______

Desired ending inventory ________

Raw materials requirements ________

Less beginning inventory _______

Purchase requirements (units) _____

Purchase requirements (in dollars)______