PROBLEMS 1) The manufacturing department of Harveton Corporation has submitted the following forecast of products to be produced for the second quarter of fiscal year 2016. April May June Units to be produced 3,000 4,500 4,000 Each unit of product requires 10 pounds of raw material that costs $5 per pound. Inventory policy requires that sufficient raw materials be in ending monthly inventory to satisfy 15% of the following month's production needs. The inventory of raw materials at the beginning of April equals exactly the amount needed to satisfy the company's inventory policy. The desired ending inventory for June is 5,500 pounds. Based on the above information, prepare the company's direct materials purchase budget for April, May, and June and for the quarter in total Direct Materials Purchase Budget April May Units to be produced Raw materials needed per unit (lbs.) Production needs (lbs.) +Desired ending inventory Total needs Beginning inventory Raw materials to be purchased Cost of raw materials per pound Total purchase cost of raw materials 1 SA EA $ June S Quarter