Exercise 13-32 (Algo) Estimate Inventory Levels Using Production Budgets (LO 13-3) Benham Foundries manufactures metal components. The inventory policy at Benham is to hold inventory equal to 149 percent of the average monthly sales for its main product. Sales for the main product for the following year are expected to be 474,000 units. Based on the inventory policy, the budget calis for the production of 444,000 units. Required: What is the beginning inventory of the main product? Exercise 13:34 (Algo) Estimate Production and Materials Requirements (LO 13-3) Cherboneau Novelties produces drink coasters (among many other products). During the current year (year 0), the company sold 535,000 units (packages of 6 coasters). In the coming year (year 1), the company expects to sell 570,000 units, and, in year 2 , it expects to sell 804,000 units. The target ending finished goods inventory for each month is equal to the next month's sales. However, because of production issues, the ending inventory in the current year is expected to be only 19,500 units. Each unit requires 0.5 pound of cork. At the end of the current year, management expects to have 22,500 pounds of cork in inventory. Management has set a target to have cork on hand equal to one half of next month's sales requirements. Sales and production take place evenly throughout the year. Required: a. Compute the total targeted production of the finished coaster for the coming year. b. Compute the required amount of cork to be purchased for the coming year. Exercise 13-35 (Algo) Estimate Purchases and Cash Disbursements (LO 13-3, 4) Dawes Designs buys T-shirts for clubs, teams, and other organizations. Dawes takes the shirts and adds the organization's logo. Because of the uncertainty in the timing of the sales and to avoid stock outages, Dawes tries to maintain an inventory of shirts equal to two-month's of sales. The shirts cost $11.50 each and must be paid for in cash. On June 30 of the current year, the company expects to have 16,100 shirts in stock. Sales estimates, based on contracts received and historical data, are as follows for the next six months: Required: a. \& b. Estimate purchases (in units) and cash required to make purchases in July, August, and September