NoMorePains Company manufactures equipment for medical purposes. Each equipment sells for $15,000. NoMorePains projects that sales for September 2021 will be 20 units, with sales increasing by two units per month for October, November, and December 2021. On September 1, 2021, NoMorePains has five units on hand and desires to maintain an ending inventory of 50% of the next months sales.

NoMorePains budgets 20 pounds of steel (direct material) per unit at a cost of $3.50 per pound. The balance in the Raw Materials InventorySteel account on September 1, 2021, is 30 pounds and NoMorePains desires the ending balance in Raw Materials InventorySteel to be 25% of the next months steel needed for production.

Q1. Find the budgeted units to be produced for October 2021.

		23
		24
		25
		26

Q2. What is the budgeted cost of sugar purchases for October 2021?

		$1,245
		$1,445
		$1,645
		$1,845