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

MonthSales in Units

April 3,590

May 3,850

June 4,630

July 4,125

August 3,960

Croy's finished goods inventory policy is to have 50 percent of the next month's sales on hand at the end of each month. Direct materials costs $3.20 per pound, and each unit requires 2 pounds. Direct materials inventory policy is to have 50 percent of the next month's production needs on hand at the end of each month. Direct materials on hand at March 31 totaled 3,720 pounds.

Required:

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

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