TB MC Qu. 20-132 (Algo) Cahuilla Corporation predicts...

Cahuilla Corporation predicts the following sales in units for the coming four months:

	April	May	June	July
Sales in units	410	450	470	410

Each month's ending finished goods inventory should be 30% of the next month's sales. March 31 finished goods inventory is 123 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 260 pounds of B. Each month's ending Raw Materials Inventory should be 20% of the following month's production needs. The budgeted production for May is:

Multiple Choice

• 392 units.

• 315 units.

• 591 units.

• 450 units.

• 456 units.