1. Selected information concerning sales and production for Cabot Co. for July are summarized as follows: Estimated sales: 40,000 units at $30 per unit 20,000 units at $65 per unit Product K: Product L: Estimated inventories, July 1: 4,000 lbs. 3,500 lbs Material A: Material B: Product K: 3,000 units@$17-$51,000 Product L: 2,700 units@$35 $94,500 $145,500 TOTAL There were no work in process inventories estimated for July. Desired inventories at July 31 Material A: 3,000 lbs. Material B: 2,500 lbs. Product K: 2,500 units@$17 $42,500 Product L: 2,000 units @ $35 = $70.000 TOTAL $112,500 were no work in process inventories desired for July 31. Direct materials used in production Product K Product L 3.5 lbs. per unit 1.8 Ibs. per unit Material A: 0.7lb. per unit Material B: 1.2lbs. per unit