ABC Company's budgeted sales for June, July, and August are 15,000, 19,000, and 16,700 units, respectively. ABC requires 40% of the next month's budgeted unit sales as finished goods inventory each month. Budgeted ending finished goods inventory for May is 6,000 units. Each unit that ABC Company produces uses 4 pounds of raw material.ABC requires 35% of the next month's budgeted production as raw material inventory each month.
Required:
Calculate the number of pounds of raw material to be purchased in June.
Number of pounds: