$$ Example $8\mathrm{.}1$

The Super Seats Company $($SSC$)$ manufactures plastic lawn chairs. They expected to sel $2,000$ units in June and $4,000$ in July. At the end of May, SSC has $500$ chairs on hand, since its policy is to maintain ending finished goods inventories at one$-$fourth of the sales expected for the next month. Direct materials on May ${30}^{th}$ were $4,000$ pounds and the desired level on June ${30}^{th}$ is $6,000$ pounds. One chair requires $8$ pounds of direct materials. The standard cost of materials is $$5\mathrm{.}00$ per pound.

How many finished units does SSC expect to make in June?

What are the budgeted purchases of direct materials $($pounds and $$)$ in June