Cahuilla Corporation predicts the following sales in units for the coming four months: Sales in units April
Question:
Cahuilla Corporation predicts the following sales in units for the coming four months:
Sales in units
April 390
May 430
June 450
July 390
Each month's ending Finished Goods Inventory in units should be 30% of the next month's sales.
March 31 Finished Goods inventory is 117 units. A finished unit requires five pounds of direct material B at a cost of $3.00 per pound. The March 31 Raw Materials Inventory has 240 pounds of direct material B. Each month's ending Raw Materials Inventory should be 20% of the following month's production needs.
The budgeted purchases of pounds of direct material B during May should be:
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta