A company expects to have sales of $$1$ million this quarter based on its per$-$unit wholesale selling price of $$10.$ The firm tries to end each quarter with $10,000$ units of finished inventory in case of large, last$-$minute orders. At the start of the current quarter, the company has $8,500$ finished units in inventory.

How many units should the firm produce this quarter?

$100,000$

$101,500$

$110,000$

$110,500$

On September $30$ of Year $1,$ a company had raw materials inventory of $30,000$ pounds. Starting in October, the company intends to have an inventory policy of maintaining ending raw materials inventory at the end of every month equal to the next two months production needs.

Six pounds of raw materials are needed in the production of one finished unit.

Forecasted production for the months October, Year $1$ through December, Year $1$ is as follows:

Month Units

October $4,000$ units

November $5,500$ units

December $2,500$ units

What is the amount of budgeted pounds of raw material to be purchased for October?

$6,000$

$24,000$

$27,000$

$42,000$