crop Inc. had the following projected sales for the next five months: Question 2

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crop Inc. had the following projected sales for the next five months:

Question 2 (of 5) value 2.00 points E8-12 Preparing Production, Raw Materials Purchases Budgets [LO 8-3b, c] Croy Inc. has the following projected sales for the next five months: Month Sales in Units April May June July August 3,420 3,945 4,520 4,110 3,920 Croy's finished goods inventory policy is to have 60 percent of the next month's sales on hand at the end of each month. Direct material costs $3 10 per pound and each unit requires 2 pounds. Raw materials inventory policy is to have 50 percent of the next month's production needs on hand at the end of each month. Raw materials on hand at March 31 totaled 3,735 pounds Re iremn budgeted production for Agnl May and june Required 1. Determine budgeted production for April, May, and June April May June Budgeted Production (Units)

Explanation / Answer

Particulars April May June Opening Inventory 0 2367 2712 Sales 3420 3945 4520 Finished Goods 2367 2712 2466 Total Units Produced 5787 4290 4274 Units required for production 11574 8580 8548 Opening Inventory 3735 4290 4274 Closing Inventory 4290 4274 3996 Total Raw material purchased 12129 8564 8270 Purchase Price 3.1 3.1 3.1 Total Purchase Cost 37600 26548.4 25637

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