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2 3 . The budget components for McLeod Company for the quarter ended June 3 0 appear below. McLeod sells garbage cans for $ 1

23. The budget components for McLeod Company for the quarter ended June 30 appear below. McLeod sells garbage cans for $12 each. Budgeted sales of garbage cans for the next four months are:
April 20,000 units
May 50,000 units
June 30,000 units
July 25,000 units
McLeods desired ending inventory of garbage cans is equal to 20 percent of the following months budgeted sales in units. On March 31, McLeod had 4,000 completed units on hand. The number of garbage cans to be produced in April and May are 26,000 and 46,000, respectively. Seven kilograms of plastic are required for each garbage can. At the end of each month, McLeod s desired inventory level is 10 percent of the following months production material needs. At March 31, McLeod had 18,200 kilograms of plastic on hand. The material used in production costs $0.60 per kilogram. Each garbage can produced requires 0.10 hours of direct labour. How many garbage cans should McLeod produce during the month of June?

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