(solution) Grafton budgets production of 300 units in June and 310 units in

(solution) Grafton budgets production of 300 units in June and 310 units in

Grafton budgets production of 300 units in June and 310 units in July. Each finished unit requires 4 pounds of raw material K, which costs $5 per pound. Each month’s ending inventory of raw materials should be 30% of the following month’s budgeted production. The June 1 raw materials inventory has 360 pounds of raw material K. Compute budgeted purchases for raw material K for June.