Claire Inc. predicts sales of 4,000 frames in May & 14,000 units in June.

Target end of month finished-goods inventory is 10% of next months sales.

The company wants RM ending inventory to cover 20% of next months needs.

The frames each require 2 pieces of trim to manufacture and each trim costs $3 per piece. The frames also require three hours of labor. The direct labor rate is $10 per hour.

1.) If Junes budgeted production = 6,000 frames. What is the desired inventory of Raw Materials (trim not frames) at the end of May?

2.) What was the beginning raw materials inventory for May (trim not frames)?

3.) Prepare a May materials usage budget for Claire Inc. if Junes budgeted production = 6,000 frames. How many pieces of trim must be purchased in May?

4.) Prepare a May materials usage budget for Claire Inc. if Junes budgeted production = 6,000 frames. What is the total budgeted Raw Materials Cost for May? Give your answer in dollars as a positive number but do not use the $ sign.

5.) Prepare a direct labor budget in hours and dollars for May. What is the total budgeted direct labor cost for May for Claire Inc.? Give your answer as a positive number (no sign).