PART 1:

The following budgeted information is provided:

Month	1	2	3
Sales in units	24,000	29,000	27,000
Production in units	25,000	31,000	24,000

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, there was 9,200 lbs. of materials on hand. Purchases of raw materials for Month 1 would be (in pounds):

28,000.

20,800.

22,000.

31,200.

PART 2:

Kaufman Industries has just completed its sales forecasts and its marketing department estimates that the company will sell 33,600 units during the upcoming year. In the past, management has maintained inventories of finished goods at approximately 5 months' sales. However, the estimated inventory at the start of the year of the budget period is only 10,000 units. Sales occur evenly throughout the year. What is the estimated production level (units) for the first month of the upcoming budget year?

2,800.

6,800.

11,200.

8,400.

PART 3:

The Tobler Company had budgeted production for the year as follows:

Quarter	1	2	3	4
Production in units	19,000	21,000	25,000	23,000

6 pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year total 13,000 lbs. The raw materials inventory at the end of each quarter should equal 11% of the next quarter's production needs in materials. Budgeted purchases of raw materials in the second quarter would be (in lbs.):

129,960 lbs.

124,680 lbs.

128,640 lbs.

126,000 lbs.