Legalos Company makes and sells a single product. It takes seven pounds of direct materials to produce one unit of this product. Budgeted production for the next three months is given below: Budgeted Units to be Produced February 18,500 units March 19,200 units April 14,300 units The company wants to maintain monthly ending inventories of direct materials that are equal to 54% of the following month's production needs. The cost of direct materials is $1.50 per pound. 1. Calculate the total cost of direct materials budgeted to be purchased in February.

Detmer Enterprises has the following budgeted sales: Budgeted Sales in Units June 6,800 units July 5,100 units August 4,400 units September 3,700 units Past experience has shown that the ending finished goods inventory for each month should be equal to 25% of the next month's expected sales in units. Additionally, it is known that every unit produced requires four direct labor hours to make and direct laborers are paid $15 per hour. Assume that Detmer pays 65% of its direct labor in the same month the employee works, pays 30% of its direct labor in the month after the employee works, and the final 5% is paid two months after the employee works. 2. Calculate Detmer Enterprises' budgeted salaries payable at August 31.