1. Royal Company is preparing budgets for the quarter ending June 30th At Royal Company, five pounds of material are required per unit of product. Management wants materials on hand at the end of each month equal to 10% of the following months production. On March 31, 13,000 pounds of material are on hand. Prepare the direct materials budget. -How much materials should be purchased in May? a. 221,500 pounds b. 240,000 pounds c. 230,000 pounds d. 211,500 pounds

	April	May	June	Quarter	July
Production	26,000 Units	46,000 units	29,000 units		23,000 units
Materials per unit (pounds):
Production Needs:
Add: Desired ending inventory
Total needed
Less: Beginning Inventory
Materials to be purchased