Question
Croy Inc. has the following projected sales for the next five months: Month Sales in Units April 3,560 May 3,830 June 4,520 July 4,155 August
Croy Inc. has the following projected sales for the next five months:
Month Sales in Units
April 3,560
May 3,830
June 4,520
July 4,155
August 3,950
Croy's finished goods inventory policy is to have 70 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 3,749 pounds.
1.Determine budgeted production for April, May, and June
2.Determine the budgeted cost of materials purchased for April, May, and June
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