Mate Boomerang Corporation manufactures and sells plastic boomerangs. Expected boomerang sales (in units) for the upcoming months are as follows:

	July	Aug.	Sept.	Oct.	Nov.	Dec.
Budgeted unit sales	12,000	15,000	10,000	8,000	7,000	11,000

Mate likes to maintain a finished goods inventory equal to 10% of the next month's estimated sales. Seven ounces of plastic resin are needed to produce every boomerang. Mate likes to have enough plastic resin on hand at the end of the month to cover 25% of the next month's production requirements. Required: How many ounces of plastic resin should Mate plan on purchasing during the month of October?

Solution (Please fill in the missing information): Production Budget:

	October	November	December
Budgeted unit sales	8,000	7,000	11,000
Add desired ending finished goods inventory
Total needs
Less beginning finished goods inventory
Required production in units

Problem 1 (continued)

Direct Materials Budget:

	October	November
Required production in units
Raw materials required per unit	7	7
Raw materials needed to meet the production
Add desired ending raw materials inventory (25% _____________)
Total raw materials needs
Less beginning raw materials inventory (25% _____________)
Raw materials to be purchased