The following are budgeted data: 
Two pounds of material are required for each finished unit. The inventory of materials at the end of each month should equal 20% of the following month's production needs. Purchases of raw materials for May should be:
Definitions:
Creditors
Individuals or institutions that lend money or extend credit to others, expecting to be repaid.
Deposits In Transit
Deposits made by a company but not yet recorded by its bank, typically due to timing differences.
Bank Reconciliation
The process of matching and comparing figures from the accounting records against those presented on a bank statement to ensure consistency.
Adjusted Balance
The ending balance of an account after adjustments have been made for transactions, charges, or credits.
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