1. Alliance Companys budgets production of 29,000 units in January and 33,000 units in the February. Each finished unit requires 4 pounds of raw material K that costs $3.00 per pound. Each months ending raw materials inventory should equal 30% of the following months budgeted materials. The January 1 inventory for this material is 34,800 pounds. What is the budgeted materials cost for January?

2. Walter Enterprises expects its September sales to be 30% higher than its August sales of $175,000. Purchases were $125,000 in August and are expected to be $145,000 in September. All sales are on credit and are collected as follows: 40% in the month of the sale and 60% in the following month. Merchandise purchases are paid as follows: 30% in the month of purchase and 70% in the following month. The beginning cash balance on September 1 is $7,400. The ending cash balance on September 30 would be: