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Croy s finished goods inventory policy is to have 5 0 percent of the next month s sales on hand at the end of each
Croys finished goods inventory policy is to have percent of the next months sales on hand at the end of each month. Direct materials cost $ per pound, and each unit requires pounds. Direct materials inventory policy is to have percent of the next months production needs on hand at the end of each month. Direct materials on hand at March totaled pounds.
Required:
Determine budgeted production for April, May, and June.
Determine budgeted cost of direct materials purchased for April and May.
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