Park desires to have trashcans on hand at the end of each month equal to 20 percent of the following months budgeted sales in units. On March 31, Park had 4,000 completed units on hand. Five pounds of plastic are required for each trashcan. At the end of each month, Park desires to have 10 percent of the following months production material needs on hand. At March 31, Park had 13,000 pounds of plastic on hand. The materials used in production cost $0.60 per pound. Each trashcan produced requires 0.10 hours of direct labor.

Instructions

Determine how much the materials purchases budget will be for the month ending April 30 (Show your work).