Charlie Companys projected sales budget for the next four months is as follows:

Units

January 70,000

February 90,000

March 55,000

April 65,000

Beginning inventory for the year is 21,000 units. Ending inventory for each month should be 30% of the next months sales. Additionally, 3 pounds of raw material are used to make each unit at a cost of $5 per pound. Charlie has a policy of keeping 20% of the following months budgeted direct material needs on hand at the end of each month.

a) How many units should the company produce in January?

b) How much should Charlie budget for raw material purchases in February?