Q3 The budget components for Curran Industries for the quarter ended June 30 appear below. Curran sells coffee makers for $12 each. Budgeted production for the next four months is: April 52,000 units May 92,000 units June 58,000 units Curran desires to have coffee makers on hand at the end of each month equal to 20 percent of the following month's budgeted sales in units. On March 31, Curran had 8,000 completed units on hand. The number of coffee makers to be produced in April and May are 52,000 and 92,000, respectively. Seven pounds of plastic are required for each coffee maker. At the end of each month, Curran desires to have 10 percent of the following month's production material needs on hand. At March 31, Curran had 36,400 pounds of plastic on hand. The materials used in production costs $0.60 per pound. Each coffee maker produced requires 0.10 hours of direct labor. Instructions Compute the cost of the plastic inventory at the end of May. Solution Q3 (4 min.) Cost of ending inventory = (10% x 58,000) x 7 $0.60 per pound = $24,360