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Rhett Corporation manufactures and sells dress shirts. Each shirt (unit) requires 4 yards of cloth. Selected data from Rhett's master budget for next quarter are
Rhett Corporation manufactures and sells dress shirts. Each shirt (unit) requires 4 yards of cloth. Selected data from Rhett's master budget for next quarter are shown below:
April May June
Budgeted sales (in units) 31,500 36,800 36,100
Budgeted production (in units) 31,800 33,200 44,100
Desired ending inventory of cloth (in yards) 4,890 4,770 4,920
How many yards of cloth should Rhett plan on purchasing in May?
120,680 yards
132,680 yards
137,690 yards
137,570 yards
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