Part III - Problems -Budgetary Planning, Total = 25 points. 1) Gertrude Products expects the following sales of its single product: July August September October November Units 6,000 6,500 7,200 7,800 8,800 Gertrude desires an ending finished goods inventory to be equal to 10% of the next month's sales needs. July 1 inventory is projected to be 800 units. 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. a. Prepare a production budget for Gertrude for as many months as is possible. b. Prepare a direct materials purchases budget for both Chemical A. July August a. Production Sales September Otr. Total +Ending Inv. -Beginning Inv. Production July August September Otr. Total b. Chemical A Production x 5 Pounds Chemical A needs + Ending Inv. - Beginning Inv. Purchases of A