Croy Inc. has the following projected sales for the next five months:

MonthSales in UnitsApril3,440May3,835June4,510July4,170August3,980

Croys finished goods inventory policy is to have 50 percent of the next months sales on hand at the end of each month. Direct materials costs $2.70 per pound, and each unit requires 2 pounds. Direct materials inventory policy is to have 50 percent of the next months production needs on hand at the end of each month. Direct materials on hand at March 31 totaled 3,638 pounds.

Required:

1. Determine budgeted production for April, May, and June.

2. Determine budgeted cost of materials purchased for April and May.