Grainger Manufacturing Inc. produces outdoor grills. On March 31, the company had 120 grills in inventory. The company's policy is to maintain a grill inventory equal to 15% of next month's sales. The company expects the following sales activity for the second quarter of the year:
Sales for July and August are expected to be 1,800 units and 1,400 units, respectively. Each completed unit of finished product requires 3 pounds of a heat resistant plastic material which costs $4.00 per pound. The company has determined that it needs 20 percent of next month's raw material needs on hand at the end of each month. The company had 600 pounds of plastic on hand at the end of March.
Required:

Question

Grainger Manufacturing Inc. produces outdoor grills. On March 31, the company had 120 grills in inventory. The company's policy is to maintain a grill inventory equal to 15% of next month's sales. The company expects the following sales activity for the second quarter of the year:
  Sales for July and August are expected to be 1,800 units and 1,400 units, respectively. Each completed unit of finished product requires 3 pounds of a heat resistant plastic material which costs $4.00 per pound. The company has determined that it needs 20 percent of next month's raw material needs on hand at the end of each month. The company had 600 pounds of plastic on hand at the end of March.
Required:

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The Answer of Grainger Manufacturing Inc. produces outdoor grills. On March 31, the company had 120 grills in inventory. The company's policy is to maintain a grill inventory equal to 15% of next month's sales. The company expects the following sales activity for the second quarter of the year:
  Sales for July and August are expected to be 1,800 units and 1,400 units, respectively. Each completed unit of finished product requires 3 pounds of a heat resistant plastic material which costs $4.00 per pound. The company has determined that it needs 20 percent of next month's raw material needs on hand at the end of each month. The company had 600 pounds of plastic on hand at the end of March.
Required: