1) The following are budgeted data:

	January			February		March
Sales in units	16,500			23,000		19,500
Production in units	19,500			20,500		19,200

One pound of material is required for each finished unit. The inventory of materials at the end of each month should equal 20% of the following month's production needs. Purchases of raw materials for February would be budgeted to be:

• 20,760 pounds

• 20,540 pounds

• 20,240 pounds

• 18,260 pounds

2) Parwin Corporation plans to sell 34,000 units during August. If the company has 13,500 units on hand at the start of the month, and plans to have 14,500 units on hand at the end of the month, how many units must be produced during the month?

• 47,500

• 35,000

• 33,000

• 48,500