Question
Croy Inc. has the following projected sales for the next five months: Month Sales in Units April 3,470 May 3,865 June 4,510 July 4,180 August
Croy Inc. has the following projected sales for the next five months: Month Sales in Units April 3,470 May 3,865 June 4,510 July 4,180 August 3,920 Croys finished goods inventory policy is to have 50 percent of the next months sales on hand at the end of each month. Direct materials costs $2.50 per pound, and each unit requires 2 pounds. Direct materials inventory policy is to have 50 percent of the next months production needs on hand at the end of each month. Direct materials on hand at March 31 totaled 3,668 pounds. Required: 1. Determine budgeted production for April, May, and June. 2. Determine budgeted cost of materials purchased for April and May.
Croy Inc. has the following projected sales for the next five months: Month April May June July August Sales in Units 3,470 3,865 4,510 4,180 3,920 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 materials costs $2.50 per pound, and each unit requires 2 pounds. Direct materials inventory policy is to have 50 percent of the next month's production needs on hand at the end of each month. Direct materials on hand at March 31 totaled 3,668 pounds. Required: 1. Determine budgeted production for April, May, and June. 2. Determine budgeted cost of materials purchased for April and May. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine budgeted production for April, May, and June. (Do not round your intermediate calculations and round your final answers to the nearest whole number.) April May June Budgeted Production (Units) Croy Inc. has the following projected sales for the next five months: Sales in Units 3,470 Month April May June July August 3,865 4,510 4,180 3,920 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 materials costs $2.50 per pound, and each unit requires 2 pounds. Direct materials inventory policy is to have 50 percent of the next month's production needs on hand at the end of each month. Direct materials on hand at March 31 totaled 3,668 pounds. Required: 1. Determine budgeted production for April, May, and June. 2. Determine budgeted cost of materials purchased for April and May. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine budgeted cost of materials purchased for April and May. (Use rounded Budgeted Production units in intermediate calculations. Round your answers to 2 decimal places.) April May Budgeted Cost of Material PurchasedStep by Step Solution
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