. A company has provided a sales budget for its first five

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. A company has provided a sales budget for its first five months… . A company has provided a sales budget for its first five months (January, February, March, April, and May) of operations. The production budget is based on the sales budget. The company has a policy that each month’s ending inventory of finished product should equal 20% of the next month’s unit sales. The direct materials purchases budget is based on the production budget. The company’s policy for each month’s ending inventory of raw materials is that it should equal 15% of the next month’s production needs for raw materials. Given this information, the company can prepare raw materials purchases budgets for how many months?Accounting Business Managerial Accounting ACCOUNTING 201

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