Croy Inc. has the following projected sales for the next five months: Month Sales in Units 3,850 3,875 4,260 4,135 3,590 April May June July August 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 materials cost $3.10 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 3,865 pounds. Required: 1. Determine budgeted production for April, May, and June. 2. Determine budgeted cost of materials purchased for April and May.
Croy Inc. has the following projected sales for the next five months: Month Sales in Units 3,850 3,875 4,260 4,135 3,590 April May June July August 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 materials cost $3.10 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 3,865 pounds. Required: 1. Determine budgeted production for April, May, and June. 2. Determine budgeted cost of materials purchased for April and May.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Croy Inc. has the following projected sales for the next five months:
Month Sales in Units
3,850
3,875
4,260
4,135
3,590
April
May
June
July
August
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
materials cost $3.10 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 3,865 pounds.
es
Required:
1. Determine budgeted production for April, May, and June.
2. Determine budgeted cost of materials purchased for April and May.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Determine budgeted cost of materials purchased for April and May. (Round your answers to 2 decimal places.)
April
May
Budgeted Cost of Material Purchased
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