Hello I need help with problem b. please and thank you! PROBLEM 5 – BUDGETS Broo

ID: 2536881 • Letter: H

Question

Hello I need help with problem b. please and thank you!

PROBLEM 5 – BUDGETS
Brooks Products expects the following sales of its single product:

July – 6,000 units
August – 6,500 units
September – 7,200 units

Brooks desires an ending finished goods inventory to be equal to 10% of the next month's sales needs. Each unit requires 5 pounds of Chemical A. July 1 materials inventory includes 8,600 pounds of Chemical A. Brooks desires to maintain a Chemical A inventory equal to 24% of next month's production needs.

a. Prepare a production budget for July and August.

July

August

Expected sales

6000

6500

Add: Desired ending finished goods inventory

650

720

Units available

6650

7220

Less:Beginning finished goods inventory

600

650

Required Production

6050

6570

b. Prepare a raw materials purchases budget for July.