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Addams, Inc Finished Goods Inventory on March 31: 120 Units Raw Materials

Question 14

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Addams, Inc., is preparing its master budget for the second quarter. The following sales and production data have been forecasted:
 April  May  June  July ‾ August  Unit sales ……400500520480540\begin{array} { l | l | l | l | l | l } & \text { April } & \text { May } & \text { June } & \underline { \text { July } } & \text { August } \\\hline \text { Unit sales } \ldots \ldots & 400 & 500 & 520 & 480 & 540\end{array} Finished goods inventory on March 31: 120 units Raw materials inventory on March 31: 450 pounds
Desired ending inventory each month: Finished goods: 30% of next month's sales
Raw materials: 25% of next month's production needs
Number of pounds of raw material required per finished unit: 4 lbs. How many pounds of raw materials should be purchased in April?

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