Cahuilla Corporation predicts the following sales in units for the coming four months: April May June July Sales in units 280 320 340 280 Each month's ending Finished Goods Inventory in units should be 40% of the next month's sales. March 31 Finished Goods inventory is 112 units. A finished unit requires five pounds of direct material B at a cost of $2.00 per pound. The March 31 Raw Materials Inventory has 240 pounds of direct material B. Each month's ending Raw Materials Inventory should be 30% of the following month's production needs. The budgeted purchases of pounds of direct material B during May should be:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Cahuilla Corporation predicts the following sales in units for the coming four months:
April May June July
Sales in units
280
320 340
280
Each month's ending Finished Goods Inventory in units should be 40% of the next month's sales. March 31 Finished Goods inventory is 112 units. A finished unit
requires five pounds of direct material B at a cost of $2.00 per pound. The March 31 Raw Materials Inventory has 240 pounds of direct material B. Each month's
during May
ending Raw Materials Inventory should be 30% of the following month's production needs. The budgeted purchases of pounds of direct material
should be:
Transcribed Image Text:Cahuilla Corporation predicts the following sales in units for the coming four months: April May June July Sales in units 280 320 340 280 Each month's ending Finished Goods Inventory in units should be 40% of the next month's sales. March 31 Finished Goods inventory is 112 units. A finished unit requires five pounds of direct material B at a cost of $2.00 per pound. The March 31 Raw Materials Inventory has 240 pounds of direct material B. Each month's during May ending Raw Materials Inventory should be 30% of the following month's production needs. The budgeted purchases of pounds of direct material should be:
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