Cahuilla Corporation predicts the following sales in units for the coming four months: April May June July Sales in units240 280 300 240 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 purchases of pounds of direct material B during May should be:
A. 1,422 lbs.
B. 1,854 lbs.
C. 288 lbs.
D. 1,008 lbs.
E. 276 lbs.
Answer: A
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