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Indigo Industries has budgeted the following unit sales: The finished goods units on hand on December 31, 2021 was 2,000 units. Each unit of finished

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Indigo Industries has budgeted the following unit sales: 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 5,640 pounds of direct materials on hand at December 31, 2021. INDIGOINDUSTRIES Direct Materials Budget January February

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