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Croy Incorporated has the following projected sales for the next five months: Month Sales in Units April 3,510 May 3,810 June July August 4,590

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Croy Incorporated has the following projected sales for the next five months: Month Sales in Units April 3,510 May 3,810 June July August 4,590 4,130 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 cost $3.30 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 3,660 pounds. Required: 1. Determine budgeted production for April, May, and June. 2. Determine budgeted cost of direct materials purchased for April and May.

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