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Question - The controller of Joy Co has requested a quick estimate of the manufacturing supplies needed for the Morton Plant for the month of July, when production is expected to be 300,000 units to meet the ending inventory requirements and sales of 305,000 units. Joy Co's budget analyst has the following actual data for the last three months.
Month
Production In Units
Manufacturing Supplies
March
280,000
$ 616,000
April
370,000
773,500
May
310,000
573,500
Using the high-low method to develop a cost estimating equation, the estimate of needed manufacturing supplies for July.
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