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Indigo Inc makes and sells serving trays. Each tray uses 1/2 pound of plastic. Budgeted production of trays in units for the next three months
Indigo Inc makes and sells serving trays. Each tray uses 1/2 pound of plastic. Budgeted production of trays in units for the next three months is as follows: April 20400 May 23300 June 25400. The company wants to maintain monthly ending inventories of plastic equal to 20% of the following month's budgeted production needs, The cost of plastic is $3 per pound. Prepare a direct materials purchase budget for the month of May
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