(Production and purchases budgets) Purely Entertainment has prepared the follow¬ ing unit sales forecast for 1997:

Estimated ending finished goods inventories are 30,000 units at December 31, 1996; 76,000 units at June 30; and 90,000 units at December 31, 1997.
In manufacturing each unit of this product, Purely Entertainment uses 5 pounds of Material A and 3 gallons of Material B. The company carries no Work in Process Inventory. Direct material ending inventories are projected as follows:LO1

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JANUARY-JUNE JULY-DECEMBER TOTAL Sales 380,000 420,000 800,000