9. The Wright Company sells a product for $10. Budgeted sales for the first quarter are: Budgeted Sales January $400,000 February $600,000 March $700,000 3 The company wants to maintain an inventory of finished goods equal to 30% of next month's sales in units and 12,000 units are on hand at the beginning of the year. Each unit requires two pounds of direct material costing $1 per pound. The company maintains direct material inventory equal to 10% of the following month's production needs. Budgeted production in units for February would be: a. 81,000 b. 60,000 c. 63,000 d. 40,000 5. Stevens Manufacturing Corporation provided the following budget information: April May June Sales, in units 200,000 190,000 120,000 Required production (units) 210,000 175,000 110,000 Each unit of finished product requires 5 pounds of direct materials. The company maintains direct materials inventory equal to 25% of the next month's expected production needs of direct materials. How many pounds of direct material should the company plan on purchasing for the month of May? a. 793,750. b. 1,012,500 c. 893,500. d. 862,500