Cahuilla Corporation Predicts the Following Sales in Units for the Coming

question 198

Multiple Choice

Cahuilla Corporation predicts the following sales in units for the coming four months: Each month's ending Finished Goods Inventory in units should be 40% of the next month's sales.March 31 Finished Goods inventory is 96 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 200 pounds of direct material B.Each month's ending Raw Materials Inventory should be 30% of the following month's production needs.
-The budgeted cost of direct material B during May should be:

• A)$576.
• B)$3,708.
• C)$552.
• D)$2,016.
• E)$2,844.

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