Sallinger Products Inc $\begin{array}{ll}\text { April } & 4000 \text { units } \\\text { May } & 5000 \text { units } \\\text { June } & 7000 \text { units }\end{array}$

Essay

Sallinger Products Inc.makes and sells grill covers.On 31 March,the company had 400 covers in inventory.The company's policy is to maintain a cover inventory equal to 10 per cent of next month's projected sales.The company expects the following sales activity for the second quarter of the year:
$\begin{array}{ll}\text { April } & 4000 \text { units } \\\text { May } & 5000 \text { units } \\\text { June } & 7000 \text { units }\end{array}$

Sales for both July and August are expected to be 8000 units each.Each completed unit of finished product requires 6 metres of a plastic material which costs $.60 per metre.The company has determined that it needs 15 per cent of next month's raw material needs on hand at the end of each month.The company had 3000 metres of plastic material on hand at the end of March.
Required:
A. Prepare a production budget far the second quarter of the year.
B. Prepare a budiget far the second quarter of the year showing the prajected cost of the direct materials (plastic) that will be needed.