QUESTION $4(24$ marks$)$

Delightal Corporation has the following sales budget for the selected six$-$month period:

Company policy is to have an ending inventory of finished product equal to $20$ percent of

the sales in units for the next month. Five pounds of material are required for each unit

produced. Each pound of material costs $$10.$ The ending inventory level for material

should equal $30$ percent of the production needs for the next month.

Required:

Prepare a production budget in units for October, November, and December.

Prepare a material purchases budget in pounds and dollars for October, November,

and December.