Alvarez Company produces various parts used in the automotive industry. The sales budget for the first eight months of 2012 shows the following ­projections:

Month             Units           Month         Units

January          25,000          May            31,400

February        27,000          June           34,500

march            32,000          July             36,700

April               28,500          August        35,000

Inventory on December 31 of the previous year was budgeted at 6,250 units. The desired quantity of finished- goods inventory at the end of each month in 2012 is to be equal to 25 percent of the next month's budgeted unit sales. Each unit of finished product requires three pounds of raw material. The company wants to have 30 percent of next month's required raw materials on hand at the end of each month.

A. Prepare a production budget for January through June of 2012.

B. Prepare a material purchases budget for the same period, assuming that each pound of raw material costs $ 22.