(c)

Prepare a production budget in units, by month and in total, for the fourth quarter of 2010. (Amounts to be deducted should be indicated with minus sign.)

October November December Total
Beginning inventory of finished goods
Units to be produced




Goods available for sale
Desired ending inventory of finished
goods (30% of next month’s
budgeted sales)




Quantity of goods sold









(d)

Prepare a materials purchases budget in pounds, by month and in total, for the fourth quarter of 2010.(Amounts to be deducted should be indicated with minus sign.)

October November December Total
Beginning inventory of raw materials
Purchases of raw materials




Raw materials available for use
Desired ending inventory of raw
materials (40% of next month’s
estimated usage)




Quantity of raw materials to be
used in production