Croy Incorporated has the following projected sales for the next five months:

Month	Sales in Units
April	3,500
May	3,925
June	4,540
July	4,195
August	3,950

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 cost $2.80 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 3,713 pounds.

Required:

1. Determine budgeted production for April, May, and June.
2. Determine budgeted cost of direct materials purchased for April and May.