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3 Franklin Products Limited manufactures and distributes a number of products to retailers. One of these products, SuperStick, requires four kilograms of material D236 in

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3 Franklin Products Limited manufactures and distributes a number of products to retailers. One of these products, SuperStick, requires four kilograms of material D236 in the manufacture of each unit. The company is now planning raw materials needs for the third quarter-July, August, and September. Peak sales of SuperStick occur in the third quarter of each year. To keep production and shipments moving smoothly, the company has the following inventory requirements a.The finished goods inventory on hand at the end of each month must be equal to 8.400 units plus 20% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 22,480 units b-The raw materials inventory on hand at the end of each month must be equal to 40% of the following month's production needs for raw materials. The raw materials inventory on June 30 for material D236 is budgeted to be 130,600 kilograms c. The company maintains no work in process inventories A sales budget for SuperStick for the last six months of the year follows August September October November December Budgeted Sales in Units 60,800 75,400 105,800 53,400 30,400 15,160

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