Question: Ricardo, Inc., is preparing its master budget for the second quarter. The following sales and production data have been forecasted: April May June July August
Ricardo, Inc., is preparing its master budget for the second quarter. The following sales and production data have been forecasted:
|
| 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 be purchased in April?
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
