Croy Incorporated has the following projected sales for the next five months: Month April May June July August Sales in Units 3,400 3,850 4,530 4,160 3,990 Croy's finished goods inventory policy is to have 50 percent of the next month's sales on hand at the end of each month. Direct materials cost $3.40 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 3,625 pounds. Required: 1. Determine budgeted production for April, May, and June. 2. Determine budgeted cost of direct materials purchased for April and May.
Croy Incorporated has the following projected sales for the next five months: Month April May June July August Sales in Units 3,400 3,850 4,530 4,160 3,990 Croy's finished goods inventory policy is to have 50 percent of the next month's sales on hand at the end of each month. Direct materials cost $3.40 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 3,625 pounds. Required: 1. Determine budgeted production for April, May, and June. 2. Determine budgeted cost of direct materials purchased for April and May.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Need 1,2 please
![**Projected Sales and Inventory Requirements for Croy Incorporated**
Croy Incorporated has provided projections for sales over the next five months as follows:
| Month | Sales in Units |
|--------|---------------|
| April | 3,400 |
| May | 3,850 |
| June | 4,530 |
| July | 4,160 |
| August | 3,990 |
**Inventory Policy:**
- **Finished Goods Inventory:** Croy's policy is to have 50% of the next month’s sales in inventory at the end of each month.
- **Direct Materials:** Cost is $3.40 per pound. Each unit requires 2 pounds. The inventory policy is to have 50% of the next month’s production needs on hand at the end of each month.
- Direct materials on hand as of March 31 totaled 3,625 pounds.
### Requirements:
1. **Determine Budgeted Production for April, May, and June.**
2. **Determine the Budgeted Cost of Direct Materials Purchased for April and May.**
**Instructions:**
Please use the tabbed interface below to enter your answers:
- For April, May, and June, calculate the budgeted production units, ensuring intermediate calculations are precise. Final answers should be rounded to the nearest whole number.
---
**Input Fields:**
- **April:** [ ]
- **May:** [ ]
- **June:** [ ]
(Note: Remember to account for inventory policies when calculating the budgeted production and cost of materials.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8f861ae4-73ff-4661-bc40-30548561b517%2Fca85640c-faaf-4f14-8259-ce2b67d30d14%2Fdqim0jb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Projected Sales and Inventory Requirements for Croy Incorporated**
Croy Incorporated has provided projections for sales over the next five months as follows:
| Month | Sales in Units |
|--------|---------------|
| April | 3,400 |
| May | 3,850 |
| June | 4,530 |
| July | 4,160 |
| August | 3,990 |
**Inventory Policy:**
- **Finished Goods Inventory:** Croy's policy is to have 50% of the next month’s sales in inventory at the end of each month.
- **Direct Materials:** Cost is $3.40 per pound. Each unit requires 2 pounds. The inventory policy is to have 50% of the next month’s production needs on hand at the end of each month.
- Direct materials on hand as of March 31 totaled 3,625 pounds.
### Requirements:
1. **Determine Budgeted Production for April, May, and June.**
2. **Determine the Budgeted Cost of Direct Materials Purchased for April and May.**
**Instructions:**
Please use the tabbed interface below to enter your answers:
- For April, May, and June, calculate the budgeted production units, ensuring intermediate calculations are precise. Final answers should be rounded to the nearest whole number.
---
**Input Fields:**
- **April:** [ ]
- **May:** [ ]
- **June:** [ ]
(Note: Remember to account for inventory policies when calculating the budgeted production and cost of materials.)
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