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Sudler Production manufacture ceramic tile
Expected Production Expected salesMay 1,580 ties 4,000 tiles
June 2,000 tiles 3,500 tiles
Each tile requires 2 kilograms of clay mix needed to make one tile. The company's policy to maintain clay mix at the end of each month equal to 20% of the next month's production needs and to maintain a finished goods inventory at the end of each month equal to 25% of next month's anticipated production needs. The cost of clay mix is $0.50 clay mix. At April 30 1,040 clay mix were on hand.
Problem 1: direct material purchases budget for May-?
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