$$ Exercise $925$ Budgeting Production and Raw$-$Material Purchases $($LO $9-3,9-6)$

$$

GreenThumb Organic Fertilizer Company plans to sell $200,000$ units of finished product in July and anticipates a growth rate in sales of $5$ percent per month. The desired monthly ending inventory in units of finished product is $80$ percent of the next month$$s estimated sales. There are $160,000$ finished units in inventory on June $30.$ Each unit of the finished product requires four pounds of raw material at a cost of $$1\mathrm{.}15$ per pound. There are $700,000$ 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 $30.$

$$

Independent of your answer to requirement $1,$ assume the company plans to produce $600,000$ 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 $30.$