Cahuilla Corporation predicts the following sales in units for the coming four months: April May June July 290 310 250 Sales in Units 250 Each month's ending Finished Goods Inventory should be 30% of the next month's sales. March 31 Finish inventory is 75 units. A finished unit requires 5 pounds of direct material B at a cost of $3.00 per pound. T Materials Inventory has 210 pounds of B. Each month's ending Raw Materials Inventory should be 20% o month's production needs. The budgeted purchases of pounds of direct material B during May should be Multiple Choice 1,476 lbs. • 296 lbs. . 1,772 lbs. . • 292 lbs. 1,184 lbs.
Cahuilla Corporation predicts the following sales in units for the coming four months: April May June July 290 310 250 Sales in Units 250 Each month's ending Finished Goods Inventory should be 30% of the next month's sales. March 31 Finish inventory is 75 units. A finished unit requires 5 pounds of direct material B at a cost of $3.00 per pound. T Materials Inventory has 210 pounds of B. Each month's ending Raw Materials Inventory should be 20% o month's production needs. The budgeted purchases of pounds of direct material B during May should be Multiple Choice 1,476 lbs. • 296 lbs. . 1,772 lbs. . • 292 lbs. 1,184 lbs.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Cahuilla Corporation predicts the following sales in units for the coming four months:
April May June
July
250 290 310 250
Sales in Units 250
Each month's ending Finished Goods Inventory should be 30% of the next month's sales. March 31 Finished Goods
inventory is 75 units. A finished unit requires 5 pounds of direct material B at a cost of $3.00 per pound. The March 31 Raw
Materials Inventory has 210 pounds of 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:
Multiple Choice
1,476 lbs.
296 lbs.
• 1,772 lbs.
292 lbs.
1,184 lbs.
.
.
.
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