Question

Production and Purchases Budgets At the beginning of October, Comfy Cushions had 2,200 cushions and 13,500 pounds of raw materials on hand. Budgeted sales for the next three months are: Month Sales October 11,000 cushions November 13,000 cushions December 16,000 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 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 Answer 0 Answer 0 Answer 0

Desired ending inventory Answer 0 Answer 0

Finished goods requirements Answer 0 Answer 0

Less beginning inventory Answer 0 Answer 0

Production requirements Answer 0 Answer 0

b. Prepare a purchases budget in 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 Answer 0 Answer 0

Desired ending inventory Answer 0

Raw materials requirements Answer 0

Less beginning inventory Answer 0

Purchase requirements (units) Answer 0

Purchase requirements (in dollars) $Answer 0

Answer 1