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Cahuilla Corporation predicts the following sales in units for the coming four months: April May June July Sales in Units 390 430 450 390 Each

Cahuilla Corporation predicts the following sales in units for the coming four months:

April May June July
Sales in Units 390 430 450 390

Each month's ending Finished Goods Inventory should be 30% of the next month's sales. March 31 Finished Goods inventory is 117 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 240 pounds of 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:

  • 2,176 lbs.

  • 436 lbs.

  • 2,612 lbs.

  • 432 lbs.

  • 1,744 lbs.

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