Terrific Tiles Ltd has a policy of maintaining a finished goods inventory balance at the end of a month equal to 50% of the sales requirements of the following month. The ending inventory balance on 31 July included 5 400 units, and the projected sales for August, September and October were 13 800, 14 600 and 18 550 units respectively. The raw material requirements per unit produced are as follows.

Required Prepare a direct materials budget for August and September.

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Quantity required Cost per unit Clay Sand 3.8 kg $12 per kg 1.7 kg Calcite 20 kg $6 per kg $10 per kg