A sales budget is given below for one of the products manufactured by Trumpet,Ltd. The inventory of finished goods at the end of each month must be equal to 20% of the next month's sales.On June 30,the finished goods inventory totaled 6,800 units.Each unit of product requires ten ounces of a special chemical known as AQ-12.Sometimes the chemical is in short supply;for this reason,the company has a policy of maintaining an inventory at the end of each month equal to 75% of the next month's production needs.This requirement was met on July 1 of the current year.Required:
Prepare a budget showing the quantity of AQ-12 to be purchased for October.
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