Production and sales estimates for June are as follows:

Estimated inventory (units), June 1	21,000
Desired inventory (units), June 30	19,000
Expected sales volume (units):
Area X	7,000
Area Y	4,000
Area Z	5,500
Unit sales price	$20

The number of units expected to be manufactured in June is:

Production estimates for August are as follows:

Estimated inventory (units), August 1	12,000
Desired inventory (units), August 31	9,000
Expected sales volume (units), August	75,000

For each unit produced, the direct materials requirements are as follows:

Direct material A ($5 per lb.)	3 lbs.
Direct material B ($18 per lb.)	1/2 lb.