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1) Cahuilla Corporation predicts the following sales in units for the coming four months: Sales in units April May June 240 280 300 July
1) Cahuilla Corporation predicts the following sales in units for the coming four months: Sales in units April May June 240 280 300 July 240 Each month's ending Finished Goods Inventory should be 40% of the next month's sales. March 31 finished goods inventory is 96 units. A finished unit requires five pounds of direct material B at a cost of $2.00 per pound. The March 31 Raw Materials Inventory has 200 pounds of B. Each month's ending Raw Materials Inventory should be 30% of the following month's production needs. 1). Prepare the production budget for May and June. 2) Prepare the raw material purchase budget for May and June.
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