Assume Lianna buys coffee beans in a competitive market. It follows that a. Lianna will negotiate with sellers whenever he buys coffee beans. b. Lianna cannot influence the price of coffee beans even if he buys a large quantity of them. c. Lianna has a limited number of sellers from which to buy coffee beans. d. Lianna might have trouble finding coffee beans at his local store.

Croy inc. has the following projected sales for the next five months: month sales in units april 3,850 may 3,875 june 4,260 july 4,135 august 3,590 croy’s finished goods inventory policy is to have 60 percent of the next month’s sales on hand at the end of each month. direct material costs $2.50 per pound, and each unit requires 2 pounds. raw materials inventory policy is to have 50 percent of the next month’s production needs on hand at the end of each month. raw materials on hand at march 31 totaled 3,741 pounds. 1. determine budgeted production for april, may, and june. 2. determine the budgeted cost of materials purchased for april, may, and june. (round your answers to 2 decimal places.)