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Lawrence Co. reports the following sales budget of its product, X2X, for the next four...

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Accounting

Lawrence Co. reports the following sales budget of its product, X2X, for the next four months: January 450 units, February 520 units, March 550 units, and April 500 units. On January 1 there are 50 units of X2X in finished goods inventory. Lawrence budgets to have 100 units of X2X on hand at the end of each month. Each finished unit of X2X requires 2 pounds of raw materials, and the company wants to end each month with raw materials inventory equal to 30% of next month's production needs. The beginning raw materials inventory for January was 600 pounds. Assume direct materials cost $3 per pound. How many pounds of raw materials is Lawrence budgeted to purchase in February?

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