Kyoto, Inc. predicts the following sales in units for the coming four months: Ap

Question

Kyoto, Inc. predicts the following sales in units for the coming four months:

                                    April May June July

Sales in Units ……….. 240 280 300 240

Although each month's ending inventory of finished units should be 60% of the next month's sales, the March 31 finished goods inventory is only 100 units. A finished unit requires five pounds of raw material B. The March 31 raw materials inventory has 200 pounds of B. Each month's ending inventory of raw materials should be 30% of the following month's production needs.

Calculate the budgeted purchases of pounds of raw material B during May

Explanation / Answer

Kyoto, Inc. predicts the following sales in units for the coming four months: Ap

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