Question
Sleeter Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations: a.
Sleeter Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations:
a. Budgeted unit sales for April, May, June, and July are 7,500, 11,900, 10,800, and 14,800 units, respectively. All sales are on credit.
b. The ending finished goods inventory equals 30% of the following month's sales.
c. The ending raw materials inventory equals 30% of the following month's raw materials production needs. Each unit of finished goods requires 6 pounds of raw materials. The raw materials cost $5.00 per pound.
If 72,000 pounds of raw materials are required for production in June, then the budgeted cost of raw material purchases for May is closest to:
A) $347,100
B) $350,970
C) $455,100
D) $559,230
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