my, budgeting, and Forec ing 84. Question ID: CIA 594 III.68 (Topic: Preparing the Budget) A company produces a product that requires 2 pounds of a raw material. The company forecasts that there will be 6,000 pounds of raw material on hand at the end of June. At the end of any given month the company wishes to have 30% of next month's raw material requirements on hand. The company has budgeted production of the product for July, August, September, and October to be 10,000, 12,000, 13,000, and 11,000 units, respectively. As of June 1, the raw material sells for $1.00 per pound. The cost of inventory is determined using the last-in-first-out (LIFO) method. If the price of raw material increases 10% as of June 30, what will be the effect of this increase on the cost of purchases from July to September? A. $3,230 increase. B. $60 increase. C. $600 increase. D $7,060 increase. Question 84 of 159