Paseo Industries has adopted the following production budget for the first 4 months of 2013.

Month		Units		Month		Units
January		10,770		March		5,090
February		7,890		April		3,950

Each unit requires 5 pounds of raw materials costing $2 per pound. On December 31, 2012, the ending raw materials inventory was 8,770 pounds. Management wants to have a raw materials inventory at the end of the month equal to 20% of next month