Question - Rhett Corporation manufactures and sells dress shirts. Each shirt (unit) requires 3 yards of cloth. Selected data from Rhett's master budget for next quarter are shown below:
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|
April
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May
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June
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|
Budgeted sales (in units)
|
26,000
|
28,000
|
32,000
|
|
Budgeted production (in units)
|
28,000
|
32,000
|
36,000
|
|
Desired ending inventory of cloth (in yards)
|
2,100
|
2,800
|
3,000
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How many yards of cloth should Rhett plan on purchasing in May?