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Sample Question Projected sales for Silver LTD for next year and beginning and ending inventory data are as follows: Each unit requires 5 pounds of material which costs $3.00 per pound. The beginning inventor of raw materials is 5000 pound. The company wants to have 3000 pounds of material in inventory at the end of year. Each unit produced requires 2 hours of direct labor time which is billed at $8 per hour. 1. Calculate the budgeted sales 2. How many units should be produced? 3. Calculate the pounds of material to be purchased . 4. Calculate the budgeted total purchase cost of direct materials. 5. Find the budgeted number of total direct labour hours needed. 6. what is the total direct labour cost