Refer to Sharpe Co. in Exercise 10.28. Assume that each unit produced uses 3 grams of raw materials and that Sharpe Co. maintains ending inventory equal to 5% of next month's usage. Sharpe Co. pays $2.50 per gram for the raw materials.

Sharpe Co. from Exercise 10.28

Sharpe Co. has projected sales as follows:

Month................................. Units

July ..................................40,000

August ..............................50,000

September ..........................70,000

October .............................50,000

November ..........................30,000

REQUIRED

Prepare a raw materials budget for the third quarter, by month and in total. Include quantity of materials to purchase and the cost of the purchase.