in predicts the following sales in units for the coming four months: April May June July 360 400 420 360 5 ng Finished Goods Inventory should be 40% of the next month's sales. March 31 Finished Goods inventory is 144 units. A finished unit requires 5 pounds of direct material B at The March 31 Raw Materials Inventory has 210 pounds of B. Each month's ending Raw Materials Inventory should be 30% of the following month's production needs. The budg during May should be: 6.
in predicts the following sales in units for the coming four months: April May June July 360 400 420 360 5 ng Finished Goods Inventory should be 40% of the next month's sales. March 31 Finished Goods inventory is 144 units. A finished unit requires 5 pounds of direct material B at The March 31 Raw Materials Inventory has 210 pounds of B. Each month's ending Raw Materials Inventory should be 30% of the following month's production needs. The budg during May should be: 6.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please do not give solution in image format thanku

Transcribed Image Text:Cahuilla Corporation predicts the following sales in units for the coming four months:
April May June July
360 400 420 360
Sales in Units
Each month's ending Finished Goods Inventory should be 40% of the next month's sales. March 31 Finished Goods inventory is 144 units. A finished unit requires 5 pounds of direct material B at a cost of
$2.00 per pound. The March 31 Raw Materials Inventory has 210 pounds of B. Each month's ending Raw Materials Inventory should be 30% of the following month's production needs. The budgeted cost
of direct material B during May should be:
Multiple Choice
O
O
O
$396.
$2,856.
$408.
$4,044
$5,268.
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