Gertrude desires an ending finished goods inventory to be equal to 20% of the next

month's sales needs. July 1 inventory is projected to be 1,000 units. Each unit requires 5

pounds of Chemical A and 14 pounds of Chemical B. July 1 materials inventory includes

10,600 pounds of Chemical A and 76,000 pounds of Chemical B. Gertrude desires to

maintain a Chemical A inventory equal to 30% 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 July, August and September.

b. Prepare a direct materials purchases budget for Chemical A, for the