Test Company projected the following unit sales for the next five quarters.

	Unit sales
Year 1, Quarter 1	1,000
Year 1, Quarter 2	1,200
Year 1, Quarter 3	1,500
Year 1, Quarter 4	2,000
Year 2, Quarter 1	1,000

All units sell for $10 per unit.

Test Company had 180 units in finished goods inventory on January 1, Year 1. The companys policy is to have 20% of the following quarters projected sales in ending finished goods inventory.

Each unit required 5 lbs. of direct materials. Projected direct materials cost is $0.20 per lb. The companys policy is to have 10% of the following quarters production needs in ending raw materials inventory. The company had 390 pounds of raw materials in inventory on January 1, Year 1 and expects to have 530 lbs. of raw materials in inventory on December 31, Year 1.

Each unit requires 0.12 direct labor hours. The direct labor wage rate is projected to be $10 per hour.

1. Determine projected sales revenue for Year 1.

Note: Give your answer using dollar signs and commas but no decimal points (cents).

Example: $12,345

2. Determine the desired ending finished goods inventory for Year 1.

3. Determine the total number of units to be produced in Year 1, Quarter 3.

4. Determine the desired ending raw materials inventory (in lbs.) in Year 1, Quarter 2.

5. Determine the quantity of raw materials to be purchased (in lbs.) in Year 1, Quarter 4.

6. Determine the total cost of direct materials to be purchased in Year 1.

7. Determine the total direct labor hours needed in Year 1, Quarter 4.

8. Determine the projected direct labor cost in Year 1, Quarter 3.