Question
Croy Inc. has the following projected sales for the next five months: Month Sales in Units April 3,410 May 3,860 June 4,630 July 4,165 August
Croy Inc. has the following projected sales for the next five months:
Month | Sales in Units |
April | 3,410 |
May | 3,860 |
June | 4,630 |
July | 4,165 |
August | 3,910 |
Croys finished goods inventory policy is to have 70 percent of the next months sales on hand at the end of each month. Direct material costs $2.80 per pound, and each unit requires 2 pounds. Raw materials inventory policy is to have 50 percent of the next months production needs on hand at the end of each month. Raw materials on hand at March 31 totaled 3,725 pounds. Required: 1. Determine budgeted production for April, May, and June. (Do not round your intermediate calculations and round your final answer to the nearest whole number.)
april | may | june | |
budgeted production (units) | 4399 | 4305 |
2. Determine the budgeted cost of materials purchased for April, May, and June
april | may | june | |
budgeted cost of material purchased | 24371.20 |
* values posted on the chart are correct
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