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Doanne Food Processing expects to have 38,000 pounds of raw materials inventory on hand on March...

Doanne Food Processing expects to have 38,000 pounds of raw materials inventory on hand on March 31, the end of the current year. The company budgets the following production (in units) for April through July, inclusive: April 122,000 May 132,000 June 143,000 July 122,000 At the end of each month the firm desires its ending raw material inventory to be 10% of the next month's production needs. Each finished unit requires three pounds of raw materials. Doanne's budgeted purchases (in pounds) of raw materials for June would be:

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Answer #1
Particular June
Production 143,000
Pound per unit 3
Total raw material for production 429,000
Add: desired ending inventory (10% of next month requirement) 36,600
Less: beginning balance 42,900
Budgeted purchase of raw material 422,700
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