Type the correct answer in the box. Spell all words correctly. Nathan calculated his company's economic order quantity and categorized all production costs. One cost was related to the cost of storing milk
in the freezers, and another cost was related to the insurance expenses that covered the company's inventory. To which cost category would
Nathan assign these costs?
Nathan would assign these costs to the
section of the economic order quantity.

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.)