Question
Croy Inc. has the following projected sales for the next five months: Month Sales in Units April 3,570 May 3,815 June 4,650 July 4,170 August
Croy Inc. has the following projected sales for the next five months: Month Sales in Units April 3,570 May 3,815 June 4,650 July 4,170 August 3,950 Croys finished goods inventory policy is to have 50 percent of the next months sales on hand at the end of each month. Direct material costs $3.20 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 3,693 pounds.
Determine budgeted production for April, May, and June.
Determine the budgeted cost of materials purchased for April, May, and June.
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