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YOSEF W Student Home - GowMU W Homepage - Elearning - Weste x Hw Ch B C ezto.mheducation.com/hm.tpx Time remaining: 2:41:11 2.00 points E8-12 Preparing Production, Raw Materials Purchases Budgets [LO 8-3b, c] Croy Inc. has the following projected sales for the next five months: Month April May Sales in Units 3,550 3,835 4590 July August 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 material costs $2.50 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 3,693 pounds. Required: 1. Determine budgeted production for April, May, and June. (Do not round your intermediate calculations and round your final answer to the nearest whole number.) April May Budgated Production (Units) 2. Determine the budgeted cost of materials purchased for Apni, May, and June. (Use rounded Budgeted Production units in intermediate calculations. Round your answers to 2 decimal places.) April May June Budgeted Cost af Material Purchased ReferenceseBook & Resources Difficulty: 2 Medium

Explanation / Answer

1.

Production Budget

2.

Material purchases budget

(*)

Budgeted production for july = 4115 + 1995 - 2,058 = 4,052

Ending raw materials required for June = Budgeted production for july * 2 pounds per unit * 50%

= 4,052 * 2 * 50%

= 4,052

April May June Sales 3,560 3,835 4,590 Ending inventory 1,918 2,295 2,058 Beginning inventory (1,780) (1,918) (2,295) Budgeted production 3,698 4,212 4,353

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