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In: Accounting

Croy Inc. has the following projected sales for the next five months: Month Sales in Units...

Croy Inc. has the following projected sales for the next five months:

Month Sales in Units
April 3,410
May 3,895
June 4,520
July 4,105
August 3,970

Croy’s finished goods inventory policy is to have 50 percent of the next month’s sales on hand at the end of each month. Direct materials costs $2.60 per pound, and each unit requires 2 pounds. Direct materials inventory policy is to have 50 percent of the next month’s production needs on hand at the end of each month. Direct materials on hand at March 31 totaled 3,653 pounds.

Determine budgeted production for April, May, and June and then determine budgeted cost of materials purchased for April and May.

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ekkarill92 answered 1 year ago
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