b. The company produces enough units each month to meet that month's sales plus a desired inventory level equal to 20% of next month's estimated seles. Finished Goods inventory at the end of 2015 consisted of 2,200 units at a variable cost of $33 eats}. c. The company purchases enough raw materials each month for the current month's production requirement and 25% of next month's production requirements. Each unit of product requires 5 kilograms of ravlr material at $0.60 per kilogram. There were 13,500 kilograms of raw materials in inventory at the end of 2015. Gameeu pays 40% of raw material purchases in the month of purchase and the remaining 60% in the following month