Boxer Company plans to sell 500,000 units of finished product in July 20x1. Management (1) anticipates a growth rate in sales of 10% per month thereafter and (2) desires a monthly ending finished-goods inventory (in units) of 80% of the following month's estimated sales. There are 400,000 completed units in the June 30, 20x1 inventory. Each unit of finished product requires four pounds of direct material at a cost of $1.90 per pound. There are 2,000,000 pounds of direct material in inventory on June 30, 20x1. Required: Prepare a production budget for the quarter ended September 30, 20x1. Note: For both part "A" and part "B" of this problem, prepare your budget on a quarterly (not monthly) basis. Independent of your answer to part "A," assume that Boxer plans to produce 1,280,000 units of finished product for the quarter ended September 30. If the firm desires to stock direct materials at the end of this period equal to 25% of current production usage, compute the cost of direct material purchases for the quarter.

Prepare a production budget for the quarter ended September 30, 20x1. Note: Prepare your budget on a quarterly (not monthly) basis.

	Total Quarterly sales Total units needed Total Quarterly production requirement

Independent of your answer to part "A," assume that Boxer plans to produce 1,280,000 units of finished product for the quarter ended September 30. If the firm desires to stock direct materials at the end of this period equal to 25% of current production usage, compute the cost of direct material purchases for the quarter.

	Material to be used in production Direct materials needed 0 Pounds to be purchased during the quarter 0 Direct materials cost per pound Total Quarterly cost of purchases $0