Question
Cahuilla Corporation predicts the following sales in units for the coming four months: April May June July Sales in Units 280 320 340 280 Each
Cahuilla Corporation predicts the following sales in units for the coming four months:
April | May | June | July | |||||
Sales in Units | 280 | 320 | 340 | 280 | ||||
Each month's ending Finished Goods Inventory should be 40% of the next month's sales. March 31 Finished Goods inventory is 112 units. A finished unit requires 5 pounds of direct material B at a cost of $2.00 per pound. The March 31 Raw Materials Inventory has 240 pounds of B. Each month's ending Raw Materials Inventory should be 30% of the following month's production needs. The budgeted purchases of pounds of direct material B during May should be:
Multiple Choice
-
316 lbs.
-
1,622 lbs.
-
1,148 lbs.
-
328 lbs.
-
2,114 lbs.
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