Question
A business predicts the following sales in units for the coming four months: April: 290 May: 330 June: 350 July: 290 Each month's ending Finished
A business predicts the following sales in units for the coming four months:
April: 290
May: 330
June: 350
July: 290
Each month's ending Finished Goods Inventory should be 30% of the next month's sales.
March 31 Finished Goods inventory is 87 units.
A finished unit requires 5 pounds of direct material B at a cost of $3.00 per pound.
The March 31 Raw Materials Inventory has 250 pounds of B.
Each month's ending Raw Materials Inventory should be 20% of the following month's production needs.
What should the budgeted purchases of pounds of direct material B during May be?
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