Cahuilla Corporation predicts the following sales in units for the coming four months: Sales in units April May June July 360 400 420 360 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 five 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 production for May is:
Cahuilla Corporation predicts the following sales in units for the coming four months: Sales in units April May June July 360 400 420 360 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 five 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 production for May is:
Chapter7: Budgeting
Section: Chapter Questions
Problem 14PA: Total Pops data show the following information: New machinery will be added in April. This machine...
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