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Saphire Company budgeted the following production in units for the second quarter of the year:
April 45,000
May 38,000
June 42,000
Each unit requires four pounds of raw material. Saphire's policy is to have 30% of the following month's production needs for materials in inventory. This policy was met in March. The desired ending inventory for April in pounds equals: _________ .

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federicomartinez376

Answer:

45.60

Explanation:

the policy indicates that 30% of the production of the following month is the desired inventory at the end of the current month.

For the end of April, the projected units for the following month, 38,000 units, which require 4 pounds each.

38,000 x 4 = 152,000 pounds needed in May.

Inventory at the end of April 30% x 152,000 = 45600 Pounds

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