Kenner Company produces two products: SR200 and TX500. Budgeted sales for four months are as follows:

	SR200	TX500
May	8,000	20,000
June	13,000	32,000
July	11,000	39,000
August	18,000	46,000

Kenner's ending inventory policy is that SR200 should have 15% of next month's sales in ending inventory and TX500 should have 40% of next month's sales in ending inventory. On May 1, there were 1,200 units of SR200 and 9,000 units of TX500. TX500 requires 6 units of Component A. (SR200 does not use Component A.) There were 30,000 units of Component A in inventory on May 1. Kenner wants to have 20% of the following month's production needs in inventory for Component A.

1.) What is the budgeted amount of Component A to be purchased in May?

2.) What is the desired ending inventory of Component A for May?

Please include the steps and formulas