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Croy Inc. has the following projected sales for the next five months: Month April Sales in Unite 3,550 May June July August 3,920 4,640 4,185
Croy Inc. has the following projected sales for the next five months: Month April Sales in Unite 3,550 May June July August 3,920 4,640 4,185 3,960 Croy's finished goods inventory policy is to have 50 percent of the next month's sales on hand at the end of each month. Direct material costs $3.10 per pound, and each unit requires 2 pounds. Raw materials inventory policy is to have 50 percent of the next month's production needs on hand at the end of each month. Raw materials on hand at March 31 totaled 3,735 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) 2. Determine the budgeted cost of materials purchased for April, May, and June. (Use rounded Budgeted Production units in intermediate calculations. Round your answers to 2 decimal places.) April Budgeted Cost of Material Purchased May June Alleyway Corp. manufactures two styles of leather bowling bag, the Strike and Turkey. Budgeted production levels for October follow: Production Strike 3,000 bags Turkey 3,550 bags Two departments, Cutting and Sewing, produce the bowling bags. Direct labor hours needed for each style are as follows: Cutting Strike 0.05 hour per bag Turkey 0.25 hour per bag Sewing 0.35 hour per bag 0.6 hour per bag Hourly direct labor rates are $10 for the Cutting Department and $15 for Sewing. Required: Determine Alleyway's budgeted direct labor cost for October. (Round your final answers to nearest whole dollar. Do not round your intermediate calculations.) Cutting Sewing Budgeted Direct Labor Cost
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