Question
Sun-Dale Limited predicts the following sales in units for the coming four months: April May June July Sales in Units 240 280 300 240 Each
Sun-Dale Limited predicts the following sales in units for the coming four months:
|
| April |
| May |
| June |
| July |
| |
Sales in Units |
| 240 |
| 280 |
| 300 |
| 240 |
| |
|
| |||||||||
Each month's ending Finished Goods Inventory should be 40% of the next month's sales. March 31 Finished Goods inventory is 96 units. A finished unit requires five pounds of direct material B at a cost of $2.00 per pound. The March 31 Raw Materials Inventory has 200 pounds of B. Each month's ending Raw Materials Inventory should be 30% of the following month's production needs. The budgeted cost of direct material B during May should be:
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