E8-12 Preparing Production, Raw Materials Purchases Budgets [LO 8-3b, c] Croy Inc. has the following projected sales for the next five months: Month Sales in Units April 3,520 May 3,815 June 4,590 July 4,110 August 3,970 Croys finished goods inventory policy is to have 70 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 3,727 pounds.

Required: 1. Determine budgeted production for April, May, and June. (Do not round your intermediate calculations and round your final answer to the nearest whole number.)

2. Determine the budgeted cost of materials purchased for April, May, and June. (Use rounded Budgeted Production units in intermediate calculations. Round your