Month 1 Month 2 Month 3 Sales in units..... 15,000 Production in units..... 20,000 18,000 16,000 22,000 15,000 One pound of material is required for each finished unit. The inventory of materials at the end of each month should equal 20% of the following month's production needs. At the beginning of Month 1,3,200 lbs. of materials were on hand. Purchases of raw materials for Month 2 would be budgeted to be: