E9.29 LO 9.11 (appendix) Budgeting production and direct material purchases: manufacturer Noosa Pools, a manufacturer of swimming pool chemicals, plans to sell 200000 units of finished product in July. Management anticipates a growth rate in sales of 5 per cent per month. The desired monthly ending inventory in units of finished product is 80 per cent of the next month's estimated sales. There are 150000 finished units in the inventory on 30 June. Each unit of finished product requires 4 kilograms of direct material at a cost of $6 per kilogram. There are 800 000 kilograms of direct material in the inventory on 30 June. Required 1. Calculate Noosa Pools' production requirements in units of finished product for the three-month period ending 30 September. 2. Independent of your answer to requirement 1, assume that the company plans to produce 600000 units of finished product in the three-month period ending 30 September. The firm will have direct material inventory at the end of the three-month period equal to 25 per cent of the direct material used during that period. Calculate the estimated cost of direct material purchases for the three-month period ending 30 September.