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. a. Production Sales July 6000 August 6500 September 7200 Qtr. Total 7800 +Ending Iny. 650 720 780 880 -Beginning Inv. (800) (650) (720) (780) Production 5850 6570 7260 7900 b. Chemical A Production July September Qtr. Total August 6 x 5 Pounds Chemical A needs +Ending Inv. I - Beginning Inv. Purchases of A