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  3. delightal corporation has the following sales budg

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

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Accounting

Delightal Corporation has the following sales budget for the selected six-month period:
MONTH
SALES IN UNITS
September
October
November
December
January
February
30,000
40,000
70,000
50,000
60,000
40,000
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.

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