ICall 82 Mall- luyaoxleQutf!...ONE UF - Workspace Croy Inc. has the following pr
ID: 2566685 • Letter: I
Question
ICall 82 Mall- luyaoxleQutf!...ONE UF - Workspace Croy Inc. has the following projected sales for the next five months: Apri May June July August 3,470 3,875 4,640 4,175 3,990 policy is to have 70 percent of the next month's sales on hand at the end of each month. Direct material costs $2.70 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 31 totaled 3,754 pounds. Required: 1. Determine budgeted production for Apri, May, and June. (Do not round your intermediate calculations and round your final answer to the nearest whole May Budgeted Production (Units) 2. Determine the budgeted cost of materials purchased for April, May, and June. (Use rounded Budgeted Production units in intermediate calculations. Round your answors to 2 decimal places.) May June Budgeted Cost of Material PurchasedExplanation / Answer
Req 1 Production Budget April May June July August Budgeted Sales unit 3470 3875 4640 4175 3990 Add: Closing inventory of Finished Goods 2712.5 3248 2922.5 2793 (70% of next month) (3875*70%) (4640*70%) (4175*70%) (3990*70%) Total needs 6182.5 7123 7562.5 6968 Less: Opening inventory 2429 2712.5 3248 2922.5 (3470*70%) Budgeted Production Units 3753.5 4410.5 4314.5 4045.5 Req 2: Material Purchase budget April May June July Budgeted Production Units 3753.5 4410.5 4314.5 4045.5 Material requirement per unit in pounds 2 2 2 2 Total Material requirement in pounds 7507 8821 8629 8091 Add: Desired Closing inventory for material 4410.5 4314.5 4045.5 (50% of next month production req) (8821*50%) (8629*50%) (8091*50%) Total need 11917.5 13135.5 12674.5 Less: Opening inventory 3754 4410.5 4314.5 (Given) Budgeted Purchase units in pounds 8163.5 8725 8360 Purchase cost per pound 2.7 2.7 2.7 Budgeted Purchase in $ 22041.45 23557.5 22572