Croy Inc. has the following projected sales for the next five months Month April

Question

Croy Inc. has the following projected sales for the next five months Month April May June Sales in Units 3,400 3,820 4,540 4,120 3,910 August Croy's finished goods inventory policy is to have 70 percent of the next month's sales on hand at the end of each month. Direct material costs $3.40 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 3,694 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.) Answer is complete but not entirely correct. April May June Budgeted Production 3,134 3,782,884 nits 2. Determine the budgeted cost of materials purchased for April, May, and June. (Use rounded Budgeted Production units in intermediate calculations. Round your answers to 2 decimal places.) Answer is complete but not entirely correct. April May June Budgeted Cost of Material Purchased 22,637.20 28,322.005 27,944.60

Explanation / Answer

1 Budgeted production April May Jun Sales in units -As given              3,400              3,820              4,540 Add: Closing inventory-70% of next month sales              2,674              3,178              2,884 Total              6,074              6,998              7,424 Less: Opening inventory-70% of current month sales              2,380              2,674              3,178 Production required              3,694              4,324              4,246 2 Budgeted cost of raw material purhcased Raw material required for current month production (Production required *2)              7,388              8,648              8,492 Add: Closing stock-50% of next month production              4,324              4,246              3,973 Total            11,712            12,894            12,465 Less: Opening stock              3,694              4,324              4,246 Raw material purchase in units              8,018              8,570              8,219 Raw material purchase in $ $ 27,261.20 $ 29,138.00 $ 27,944.60 Please raise another question for remaining part as per chegg policy.

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