Croy Inc. has the following projected sales for the next five months: Month Sales in Units April 3,500 May 3,860 June 4,590 July 4,195 August 3,960 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 materials costs $2.70 per pound, and each unit requires 2 pounds. Direct materials inventory policy is to have 50 percent of the next month’s production needs on hand at the end of each month. Direct materials on hand at March 31 totaled 3,680 pounds. Required: 1. Determine budgeted production for April, May, and June. I figured out May 4,225 and June 4,393. How do you figure out April without knowing March units?
Croy Inc. has the following projected sales for the next five months: Month Sales in Units April 3,500 May 3,860 June 4,590 July 4,195 August 3,960 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 materials costs $2.70 per pound, and each unit requires 2 pounds. Direct materials inventory policy is to have 50 percent of the next month’s production needs on hand at the end of each month. Direct materials on hand at March 31 totaled 3,680 pounds. Required: 1. Determine budgeted production for April, May, and June. I figured out May 4,225 and June 4,393. How do you figure out April without knowing March units?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Croy Inc. has the following projected sales for the next five months:
| Month | Sales in Units |
| April | 3,500 |
| May | 3,860 |
| June | 4,590 |
| July | 4,195 |
| August | 3,960 |
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 materials costs $2.70 per pound, and each unit requires 2 pounds. Direct materials inventory policy is to have 50 percent of the next month’s production needs on hand at the end of each month. Direct materials on hand at March 31 totaled 3,680 pounds.
Required:
1. Determine budgeted production for April, May, and June.
I figured out May 4,225 and June 4,393. How do you figure out April without knowing March units?
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