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EX $9-25($Algo$)$ Budgeting Production and Raw$-$Material Purchases $($LO $9\mathrm{.}3,9-6)$

GreenThumb Organic Fertilizer Company plans to sell $240,000$ units of finished product in July and anticipates a growth rate in sales of $4$ percent per month. The desired monthly ending inventory in units of finished product is $70$ percent of the next month's estimated sales. There are $168,000$ finished units in inventory on June $30.$ Each unit of finished product requires $3$ pounds of raw material at a cost of $$1\mathrm{.}55$ per pound. There are $730,000$ pounds of raw material in inventory on June $30.$

Required: Compute the company's total required production in units of finished product for the entire three$-$month period ending September $30.$Note: Round all intermediate calculations and your final answer to the nearest unit.

Independent of your answer to requirement $1,$ assume the company plans to produce $760,000$ units of finished product in the three$-$

month period ending September $30,$ and to have raw$-$material inventory on hand at the end of the three$-$month period equal to $25$

percent of the use in that period. Compute the total estimated cost of raw$-$material purchases for the entire three$-$month period

ending September $30.$

Total required production in units

Total estimated cost

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