Question
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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