Each month's ending Finished Goods Inventory 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 B. Each month's ending Raw Materials Inventory should be 30% of the following month's production needs. The budgeted production for May is:

Answer:$2,844Step-by-step explanation:we know that Budgeted Production i = Estimated Sales + Closing Inventory - Opening Inventoryso budgeted production of may= may sales + 40% of June Sales - 40% of May Sales)=280+ ( 300*40%) - (280*40%)=288 unitsBudgeted Purchase in kg for May = Required for May's Prod + (30% Required for June Prod) - ( 30% of May Prod)= 288*5 + ( 276*5*30%) - (288*5*30%)  ( June production=  300+ 240*40% - 300*40%) = 276=1.422 kgBudgeted Cost for Purchase of Raw Material = 1422* 2 = $2,844