Greyt Dog Beds Ltd manufactures dog beds specifically designed for greyhounds and whippets. The company purchases all the required materials from external suppliers and designs and assembles the product in house. The greyhound bed is much larger than the whippet bed and requires 4 metres of canvas material for the mattress and 2 metres of powder-coated steel for the framework. The whippet bed requires 2 metres of canvas material for the mattress and 1 metre of powder-coated steel for the framework. The beds are filled with a custom-fitted high-quality wool insert to provide maximum comfort for the animal. The company anticipates the following sales for June 2020: greyhound 230 beds and whippet 150 beds. The budgeted cost for the canvas material is currently $12 per metre and the powder-coated steel is $21 per metre. The cushion inserts are expected to cost $25 and $20 respectively. Currently, the business has 13 greyhound beds on hand and 1 whippet bed. Greyt Dog Beds Ltd plans to have a finished goods inventory of 20 greyhound beds and 15 whippet beds at the end of June. The company currently has on hand 538 metres of canvas, 189 metres of steel, and 23 inserts for greyhound beds and 15 inserts for the smaller bed. It does not have a policy of keeping raw materials on hand at the end of the month.

Required

(a) Prepare the production budget for June 2020.

(b) Prepare the purchases budget for June 2020.