Cahuilla Corporation predicts the following sales in units for the coming four months: Sales in units April 390 May 430 June 450 July 390 Each month’s ending Finished Goods Inventory in units should be 30% of the next month’s sales. March 31 Finished Goods inventory is 117 units. A finished unit requires five pounds of direct material B at a

Sep 8, 2023

Cahuilla Corporation predicts the following sales in units for the coming four months:

                         Sales in units

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Cahuilla Corporation predicts the following sales in units for the coming four months: Sales in units April 390 May 430 June 450 July 390 Each month’s ending Finished Goods Inventory in units should be 30% of the next month’s sales. March 31 Finished Goods inventory is 117 units. A finished unit requires five pounds of direct material B at a
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April                          390

May                           430

June                          450

July                            390

Each month’s ending Finished Goods Inventory in units should be 30% of the next month’s sales. 

March 31 Finished Goods inventory is 117 units. A finished unit requires five pounds of direct material B at a cost of $3.00 per pound. The March 31 Raw Materials Inventory has 240 pounds of direct material B. Each month’s ending Raw Materials Inventory should be 20% of the following month’s production needs. 

The budgeted purchases of pounds of direct material B during May should be:

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