Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

E 8 - 1 2 ( Algo ) Preparing Production, Direct Materials Purchases Budgets [ LO 8 - 3 b , c ] Croy Incorporated

E8-12(Algo) Preparing Production, Direct Materials Purchases Budgets [LO 8-3b, c]
Croy Incorporated has the following projected sales for thext five months:
\table[[,Sales in],[Month,Units],[April,3,420],[May,3,895],[June,4,630],[July,4,170],[August,3,930]]
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 $2.60 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 3,658 pounds.
Required:
Determine budgeted production for April, May, and June.
Determine budgeted cost of direct materials purchased for April and May.
Complete this question by entering your answers in the tabs below.
Requiret1
Required 2
Determine budgeted production for April, May, and June.
Note: Do not round your intermediate calculations and round your final answers to the nearest whole number.
\table[[Budgeted Production (Units),April,May,June]]
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting Information For Decision Making

Authors: Anthony A. Atkinson

7th Edition

1618533517, 9781618533517

More Books

Students also viewed these Accounting questions

Question

LO6Outline steps for creating a performance improvement plan.

Answered: 1 week ago