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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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