The sales budget for the first eight months of 2012shows the

The sales budget for the first eight months of 2012shows the following ­projections:Month     Units      Month    Units  January  25,000    May    31,400  February  27,000    June    34,500March    32,000    July     36,700April    28,500    August    35,000 Inventory on December 31 of the previous year wasbudgeted at 6,250 units. The desired quantity of finished- goods inventory atthe end of each month in 2012 is to be equal to 25 percent of the next month’sbudgeted unit sales. Each unit of finished product requires three pounds of rawmaterial. The company wants to have 30 percent of next month’s required rawmaterials on hand at the end of each month. A. Prepare a production budget for January through June of 2012. B. Prepare a material purchases budgetfor the same period, assuming that each pound of raw material costs $ 22.