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Hospitable Co. provides the following sales forecast for the next four months: Sales (units) April...

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Accounting

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Hospitable Co. provides the following sales forecast for the next four months: Sales (units) April May June July 500 580 540 620 The company wants to end each month with ending finished goods inventory equal to 25% of next month's sales. Finished goods inventory on April 1 is 190 units. Assume July's budgeted production is 540 units. In addition, each finished unit requires five pounds of raw materials and the company wants to end each month with raw materials inventory equal to 30% of next month's production needs. Beginning raw materials inventory for April was 663 pounds. Assume direct materials cost $4 per pound. Prepare a direct materials budget for April, May, and June. HOSPITABLE CO. Direct Materials Budget For April, May, and June April May June Budgeted production (units) 455 570 560 units Materials needed for production Total materials requirements Materials to be purchased Total cost

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