Kyoto, Inc. predicts the following sales in units for the coming four months:
Although each month's ending inventory of finished units should be 60% of the next month's sales, the March 31 finished goods inventory is only 100 units. A finished unit requires five pounds of raw material B. The March 31 raw materials inventory has 200 pounds of B. Each month's ending inventory of raw materials should be 30% of the following month's production needs. The budgeted production for May is:

Question

Quizplus · Accepted Answer

To calculate the budgeted production for May, we need to know April's sales and May's desired ending inventory. However, the sales figures for these months are not directly provided in the question. Typically, to find the budgeted production, we would use the formula: Budgeted Production = Sales + Desired Ending Inventory - Beginning Inventory. Since the desired ending inventory is 60% of the next month's sales and each unit requires five pounds of raw material B, we would calculate May's production based on April's sales and the desired ending inventory for May, considering the raw material requirements. However, without the specific sales figures for April and May, we cannot directly calculate the exact number. The correct answer involves understanding the relationship between sales, ending inventory requirements, and raw material needs, but specific sales data for April and May is missing in the question provided.