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Cahuilla Corporation predicts the following sales in units for the coming four months: April May June July 440 480 500 440 Sales in units Each
Cahuilla Corporation predicts the following sales in units for the coming four months: April May June July 440 480 500 440 Sales in units Each month's ending Finished Goods Inventory in units should be 30% of the next month's sales, March 31 Finished Goods inventory is 132 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 290 pounds of direct material B. Each month's ending Raw Materials Inventory should be 20% of the following month's production needs. The budgeted purchases of pounds of direct material B during May should be: Multiple Choice 2.912 lbs. 486 lbs. o 2,426 lbs. O 482 lbs. 1,944 lbs
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