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Granville Industries has budgeted the following unit sales: Year 2022 Units April 10,000 May 8,000 June 9,000 July 11,000 August 15,000 The finished goods units
Granville Industries has budgeted the following unit sales: Year 2022 Units April 10,000 May 8,000 June 9,000 July 11,000 August 15,000 The finished goods units on hand on March 31, 2022, was 2,000 units. Each unit requires 5 pounds of raw materials that are estimated to cost an average of $7.50 per pound. It is the company's policy to maintain a finished goods inventory at the end of each month equal to 20% of next month's anticipated sales. They also have a policy of maintaining a raw materials inventory at the end of each month equal to 30% of the pounds needed for the following month's production. There were 10,640 pounds of raw materials on hand at March 31, 2022. Instructions For the second quarter of 2022, prepare a production budget.
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