Hello! I understand most of this except for how Beginning inventory is found. If someone could clearly explain step by step how beginning inventory is found I would appreciate it. I'm mainly confused why it doesn't tell us what July's beginning inventory is and just states " The inventory of plastic at the beginning of July equals exactly the amount needed to satisfy the inventory policy." It's probably simple but to me it sounds like a riddle

Direct Materials Purchases Budget Langer Company produces plastic items, including plastic housings for humidifiers. Each housing requires about 21 ounces of plastic costing $0.1 per ounce. Langer molds the plastic into the proper shape. Langer has budgeted production of the housings for the next 4 months as follows Units 3,500 4,400 4,900 6,300 July August September October Inventory policy requires that sufficient plastic be in ending monthly inventory to satisfy 30% of the following month's production needs. The inventory of plastic at the beginning of July equals exactly the amount needed to satisfy the inventory policy. Required: Prepare a direct materials purchases budget for July, August, and September, showing purchases in units and in dollars for each month and in total. If required, round the total purchase cost to nearest whole value. Required Prepare a direct materials purchases budget for July, August, and September, showing purchases in units and in dollars for each month and in total. If required, round the total purchase cost to nearest whole value Langer Company Direct Materials Purchases Budget For July, August and September July August September Total Units to be produced Direct materials per unit (ounces) Production needs Desired ending inventory (ounces) Total needs Less: Beginning inventory Direct materials to be purchased (ounces) $0.1 0.1 $0.1 $0.1 Cost per ounce Total purchase cost