The first problem has been solved. I need the second part completed, as shown in bold. Document Preview: Midwest Inc. manufactures and sells a single product. They are in the process of preparing next...

Midwest Inc. manufactures and sells a single product. They are in the process of preparing next quarter’s budget and have provided the following data. 16 pts Finished goods inventory, July 12,000 unitsDesired finished goods inventory, July 312,500 unitsDesired finished goods inventory, August 312,400 unitsProjected sales, July6,000 unitsProjected sales, August7,500 unitsRaw material required per unit5 poundsEstimated raw material cost$9 per poundDirect labor required per unit2 hoursEstimated direct labor rate$16 per hourFactory overhead rate (based on direct labor)$12 per hour Company policy is to have enough material on hand at the end of each month to meet 30% of the following month’s production needs. How many pounds of material does Midwest Inc. plan to purchase in July? What is the budgeted August 31 finished goods inventory balance (in dollars)? a.33,850 poundsb.$242,400Workings: For a. Production budget for the month of July & AugustJulyAugustProjected sales60007500Add: Desired finished goods inventory25002400Total unit requirements85009900Less; Beginning finished goods inventory20002500Production budget, in units for July65007400 Raw materials purchase budget for JulyJulyProduction budgeted in units, for July6500x Raw materials required per unit5poundsProduction requirement in pounds32500Add: Desired ending inventory(30% x 7400 units x 5 pounds each)11100Total raw material requirements43600Less: Beginning raw materials(30% x 6500 units x 5 pounds each)9750Raw materials purchases, in pounds33850pounds For b. Finished goods, in units, at August 31 2400 unitsRaw materials cost (2400 units x 5 pounds per unit x $9 per pound) $ 108,000 Direct labor cost(2400 units x 2 hours per unit x $16 per hour) $ 76,800 Factory overhead cost(2400 units x 2 hours per unit x $12 per...