Question

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

Month	Sales in Units
April	3,570
May	3,890
June	4,510
July	4,110
August	4,000

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 $2.90 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 3,762 pounds.     

Required:

1. Determine budgeted production for April, May, and June. (Do not round your intermediate calculations and round your final answer to the nearest whole number

	April	May	June
Budgeted Production (Units)

2. Determine the budgeted cost of materials purchased for April, May, and June. (Use rounded Budgeted Production units in intermediate calculations. Round your answers to 2 decimal places.)

	April	May	June
Budgeted Cost of Material Purchased

Answer 1