Croy’s finished goods inventory policy is to have 50 percent of the next month’s sales on hand at the end of each month.

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Croy’s finished goods inventory policy is to have 50 percent ofthe next month’s sales on hand at the end of each month. Directmaterials costs $3.20 per pound, and each unit requires 2 pounds.Direct materials inventory policy is to have 50 percent of the nextmonth’s production needs on hand at the end of each month. Directmaterials on hand at March 31 totaled 3,705 pounds.
Required:
1. Determine budgeted production forApril, May, and June.
2. Determine budgeted cost of materialspurchased for April and May.