Current Attempt in Progress Pronghorn Industries has budgeted the following unit sales: 2022 Units January 10,000 February 8.500 March 9,000 April 11.500 May 14.500 -/12 E The finished goods units on hand on December 31, 2021 was 2,000 units. Each unit of finished goods requires 2 pounds of direct materials that are estimated to cost an average of $5 per pound. It is the company's policy to maintain a finished goods inventory at the end of each month equal to 20% of next month's anticipated sales. The company also has a policy of maintaining a direct materials inventory at the end of each month equal to 30% of the pounds needed for the following month's production. There were 5.820 pounds of direct materials on hand at December 31, 2021.