Gertrude Products expects the following sales of its single product:
UnitsJune6,260July6,760August7,460September8,060October9,060
Required
Gertrude has an ending finished goods inventory policy of 10% of the next month's sales needs. Each unit requires 5 pounds of Chemical A and 14 pounds of Chemical B. July 1 materials inventory includes 8,600 pounds of Chemical A and 76,000 pounds of Chemical B. Gertrude desires to maintain a Chemical A inventory equal to 20% of next month's production needs and a Chemical B inventory equal to 100% of next month's production needs.
Prepare a production budget for Gertrude Products for the quarter ending September 30.
Prepare a direct materials purchases budget for Chemical A for the quarter ending September 30. Assume a desired ending inventory for Chemical A of 9,080 pounds at September 30, and a constant unit cost of $2.65 per pound
Note: Deductible answers must be indicated with a minus sign.