The company plans for finished goods inventory of 120 units at the end of June. In addition, each finishedunit requires…

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The company plans for finished goods inventory of 120 units at the end of June. In addition, each finishedunit requires five pounds of raw materials and the company wants to end each month with raw materialsinventory equal to 30% of next month’s production needs. Beginning raw materials inventory for April was663 pounds. Each finished unit requires 0.50 hours of direct labor at the rate of $16 per hour. The companybudgets variable overhead at the rate of $20 per direct labor hour and budgets fixed overhead of $8,000 per month. prepare a raw materials budget for April, May, and June.

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