Question 1:

Timothy, LLC, originally budgeted $10,000 of costs to produce 100 toy cars. $5,000 of these costs consisted of direct labor, $1,000 consisted of raw materials, and $3,000 consisted of fixed licensing and rental costs. Timothy, LLC also budgeted $30,000 of revenue from the sale of these cars. Timothy, LLC actually produced and sold 100 toy cars (no beginning or ending FG or WIP inventory). What is the flexible budget amount of raw materials? (In dollars)

(_____________)

Question 2:

	Units
Estimated Sales	800 units
Desired Finished Goods Ending Inventory	160 units
Finished Goods Beginning Inventory	80 units
Beginning WIP	0 units
Desired Ending WIP	0 units
Raw Materials Needed per unit	2.8 lbs
Raw Materials Beginning Inventory	500 lbs
Desired Raw Materials Ending Inventory	300 lbs

How many pounds of raw materials need to be purchased?

(___________________)