Lubriderm Corporation has the following budgeted sales for the next six-month period: Month Unit Sales June......................................................90,000 July.....................................................120,000

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Lubriderm Corporation has the following budgeted sales for the next six-month period:
Month Unit Sales
June......................................................90,000
July.....................................................120,000
August................................................210,000
September.............................................150,000
October................................................180,000
November.............................................120,000
There were 30,000 units of finished goods in inventory at the beginning of June. Plans are to have an inventory of finished products that equal 20% of the unit sales for the next month.
Five pounds of materials are required for each unit produced. Each pound of material costs $8. Inventory levels for materials are equal to 30% of the needs for the next month. Materials inventory on June 1 was 15,000 pounds.
Required:
Prepare production budgets in units for July, August, and September.
Prepare a purchases budget in pounds for July, August, and September, and give total purchases in both pounds and dollars for each month.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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