Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. croy inc. has the following projected sales for th

Croy Inc. has the following projected sales for the next five months: ...

90.2K

Verified Solution

Question

Accounting

Croy Inc. has the following projected sales for the next five months:

Month Sales in Units
April 3,410
May 3,925
June 4,650
July 4,170
August 3,950

Croys finished goods inventory policy is to have 60 percent of the next months sales on hand at the end of each month. Direct material costs $3.40 per pound, and each unit requires 2 pounds. Raw materials inventory policy is to have 50 percent of the next months production needs on hand at the end of each month. Raw materials on hand at March 31 totaled 3,719 pounds.

1. Determine budgeted production for April, May, and June

2. Determine the budgeted cost of materials purchased for April, May, and June.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students