Tonga Toys manufactures and distributes a number of products to retailers. One of these products, Play clay, requires five pounds of material A135 in the manufacture of each unit. The company is now planning raw materials needs for the third quarter July, August, and September. Peak sales of Playclay occur in the third quarter of each year. To keep production and shipments moving smoothly, the company has the following inventory requirements: a. The finished goods inventory on hand at the end of each month must be equal to 7,000 units plus 29% of the next month's sales. The finished goods inventory on June 30 is budgeted to be 17,150 units. b. The raw materials inventory on hand at the end of each month must be equal to one-half of the following month's production needs for raw materials. The raw materials inventory on June 30 for material A135 is budgeted to be 94,750 pounds. c. The company maintains no work in process inventories A sales budget for Playclay for the last six months of the year follows. Budgeted Sales n Units 35,000 July 45,000 August 65.000 September 30,000 October 15,000 November 5,000 December