Reference no: EM132588847

Cahuilla Corporation predicts the following sales in units for the coming four months:

                                 April               May           June             July

Sales in units         380               420          440              380

Question 1: Each month's ending Finished Goods Inventory in units should be 40% of the next month's sales. March 31 Finished Goods inventory is 152 units. A finished unit requires five pounds of direct material B at a cost of $2.00 per pound. The March 31 Raw Materials Inventory has 230 pounds of direct material B. Each month's ending Raw Materials Inventory should be 30% of the following month's production needs. The budgeted purchases of pounds of direct material B during May should be: