Cahuilla Corporation predicts the following sales in units for the coming four months: May July 470 430 April 430 Multiple Choice June 490 Sales in units Each month's ending finished goods inventory should be 40% of the next month's sales. March 31 finished goods inventory is 172 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 280 pounds of B. Each month's ending Raw Materials Inventory should be 30% of the following month's production needs. The budgeted production for May is:

Cahuilla Corporation predicts the following sales in units for the coming four months: May July 470 430 April 430 Multiple Choice June 490 Sales in units Each month's ending finished goods inventory should be 40% of the next month's sales. March 31 finished goods inventory is 172 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 280 pounds of B. Each month's ending Raw Materials Inventory should be 30% of the following month's production needs. The budgeted production for May is:

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 3CE: Pietro expects to produce 50,000 units and sell 49,300 units. Beginning inventory of finished goods...

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