1. Neven expects to have 20,000 units of finished goods inventory on hand on March 31 and reports the following expected sales (in units) for the months of April through July:

April	120,000
May	140,000
June	150,000
July	120,000

At the end of each month Neven targets ending finished goods inventory to be 20% of the next months projected sales (in units).

1. Calculate budgeted production (in units) for May.
2. Each unit requires four (4) pounds of direct materials. The ending inventory target for direct materials inventory is equal to 10% of the next months budgeted unit sales. How many pounds of direct materials will be purchased in May?