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Cahuilla Corporation predicts the following sales in units for the coming four months: April May June July 240 280 300 240 Sales in Units Each

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Cahuilla Corporation predicts the following sales in units for the coming four months: April May June July 240 280 300 240 Sales in Units Each month's ending Finished Goods Inventory should be 40% of the next month's sales, March 31 Finished Goods inventory is 96 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 200 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: 1 Multiple Choice 1,008 lbs. 0 1,854 lbs. 0 288 lbs. 0 O 276 lbs. 0 1,422 lbs. 0

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