Ch. 8 Homework 2 Please solve and explain the following problem Croy Inc. has the following projected sales for the next five months: MonthSales in UnitsApril 3,850May 3,875June 4,260July 4,135August 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. 1) Determine budgeted production for April, May, and June. 2) Determine the budgeted cost of materials purchased for April, May, and June

Ch. 8 Homework 2 Please solve and explain the following problem Croy Inc. has the following projected sales for the next five months: MonthSales in UnitsApril 3,850May 3,875June 4,260July 4,135August 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. 1) Determine budgeted production for April, May, and June. 2) Determine the budgeted cost of materials purchased for April, May, and June

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter15: Managing Short-term Assets

Section: Chapter Questions

Problem 2PROB

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