sales for july and august are expected to be 1,800 units and 1,400 units, respectively. each completed unit of finished product requires 3 pounds of a heat resistant plastic material which costs $4.00 per pound. the company has determined that it needs 20 percent of next month's raw material needs on hand at the end of each month. the company had 600 pounds of plastic on hand at the end of march. required: a. prepare a production budget for the second quarter of the year. b. prepare a budget for the second quarter of the year showing the projected cost of the direct materials (plastic) that will be needed.
