Croy Inc. has the following projected sales for the next five months: Month Sales in Units April May June July August 3,850 3,875 4,260 4,135 3,590 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 3,865 pounds.
Croy Inc. has the following projected sales for the next five months: Month Sales in Units April May June July August 3,850 3,875 4,260 4,135 3,590 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 3,865 pounds.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ch 8 Homework Question 9
Please answer and solve the problem below.
Attached are the sales for Cory's
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 3,865 pounds.
Required:
1. Determine budgeted production for April, May, and June.
2. Determine the budgeted cost of materials purchased for April, May, and June. (Round your answers to 2 decimal places.)
Transcribed Image Text:Croy Inc. has the following projected sales for the next five months:
Month
Sales in Units
April
May
June
July
August
3,850
3,875
4,260
4,135
3,590
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 3,865 pounds.
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