Question
Cahuilla Corporation predicts the following sales in units for the coming four months: April May June July Sales in units 440 480 500 440 Each
Cahuilla Corporation predicts the following sales in units for the coming four months:
April | May | June | July | ||||||
Sales in units | 440 | 480 | 500 | 440 | |||||
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 cost of direct material B during May should be:
$482. $482. $4,852. oo o o $3,888. 55,824. $5,824. $486. $486
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