1. Use the following data to determine how many units should be produced

Dirty Hands, Inc. sells soap. The sales budget is 800,000 units. Management estimates that there will be 100,000 units in beginning inventory and 125,000 units in ending inventory.

Based on the production budget in problem above what would be the budgeted cost of direct material if it takes 7 oz of material to make a bar of soap and each oz costs $0.15.