Question
Croy Incorporated has the following projected sales for the next five months: Month Sales in Units April 3,550 May 3,805 June 4,550 July 4,105 August
Croy Incorporated has the following projected sales for the next five months:
Month | Sales in Units |
---|---|
April | 3,550 |
May | 3,805 |
June | 4,550 |
July | 4,105 |
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 materials cost $2.80 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 3,678 pounds.
Required:
Determine budgeted production for April, May, and June.
Budgeted production (units)
April ?
May ? = 4177
June ? = 4328
Determine budgeted cost of direct materials purchased for April and May.
Budgeted cost of direct materials purchased
April ?
May ?
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