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Question 4 (9 points): Piper Pasta produces pasta. Piper has a policy that its ending inventory of pasta should be 20% of the next
Question 4 (9 points): Piper Pasta produces pasta. Piper has a policy that its ending inventory of pasta should be 20% of the next month's expected demand. The pasta that piper produces uses a special organic flour which costs $2.40 per kilogram. Each batch of pasta that Piper makes requires 5 kilograms of flour. Piper has a policy that ending raw materials inventory should always be 30% of the next months need. The sales demand schedule for the second quarter is as follows: Month Budgeted Demand (Batches) April May June 800 950 900 Required (Put your answers in the space below): Prepare the direct materials budget for April and May.
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