Croy Inc. has the following projected sales for the next fivemonths: Month Sales in Units April 3,430 May 3,900 June 4,530 July4,115 August 4,000 Croy’s finished goods inventory policy is tohave 60 percent of the next month’s sales on hand at the end ofeach month. Direct material costs $2.80 per pound, and each unitrequires 2 pounds. Raw materials inventory policy is to have 50percent of the next month’s production needs on hand at the end ofeach month. Raw materials on hand at March 31 totaled 3,712 pounds.Required: 1. Determine budgeted production for April, May, andJune. (Do not round your intermediate calculations and round yourfinal answer to the nearest whole number.) 2. Determine thebudgeted cost of materials purchased for April, May, and June. (Userounded Budgeted Production units in intermediate calculations.Round your answers to 2 decimal places.)
