Steinway Inc., the builder of large pianos and musical instruments is preparing its master budget for the
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Question:
Steinway Inc., the builder of large pianos and musical instruments is preparing its master budget for the second quarter. The following sales and production data have been forecast as:
| April | May | June | July | August |
Unit sales | 400 | 500 | 520 | 480 | 540 |
Finished goods inventory on March 31: 120 units
Raw materials inventory on March 31: 450 pounds
Desired ending inventory each month:
Finished goods: 30% of next month's sales
Raw materials: 25% of next month's production needs
Number of pounds of raw material required per finished unit: 4 lbs.
How many pounds of raw materials should Steinway purchase in April?
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