Section B: Problem Solving $(50$ points$)$

Bottled Nature Ltd made the following sales projections $($in units$)$ for the next six$-$month period:

There were $20,000$ units of finished goods in inventory at the beginning of January. Plans are to have an

inventory of finished products that equal $30\%$ of the unit sales for the next month.

Eight pounds of materials are required for each unit produced. Each pound of material costs $$6.$ Inventory levels

for materials are equal to $25\%$ of the needs for the next month. Materials inventory on January $1$ was $35,000$

pounds.

Required:

a$.$ Prepare production budgets in units from January to April. $(9$ points$)$

b$.$ Prepare a purchases budget in pounds from January to April and give total purchases in both pounds and

dollars for each month. $(11$ points$)$