7.(2points) Brad Company has 6,000 gallons of a given material on hand at the be

Question

7.(2points) Brad Company has 6,000 gallons of a given material on hand at the beginning of May. During May, the company plans to make 10,000 units of a final product For June, the planned production is 15,000 units of a final product (finished goods) 1 unit of the final product requires 3 gallons of the material. The company's policy is that it wil maintain an ending material quantity to be same as 20% of the following month's production needs (quantity to be used in production). Based on the information above, how many gallons of the material should be purchased in May? gallons * Use the following information to solve the following two questions 8. (2points) A company has budgeted sale units are as follows: July August $20,000 $24,000 $30,000 One-half of sales are cash sales and one-half of sales are credit sales. The company collects cash from credit sales over two months (30% in the month of sale, and 70% in the month following sale) During September, the company's expected cash collections from sales are how much? $

Explanation / Answer

7 May Numebr of units to be produced 10000 Add Ending inventory 3000 (15000*20%) 13000 less Beginning inventory 2000 (10000*20% Units to be made 11000 Number of gallons per unit required 3 Gallons to be purchased in May 33000 8 September Total sales 30000 Cash sales 15000 Credit sales 15000 Collection Cash sales 15000 Current month 4500 (15000*30%) August month 8400 (24000*50%*70%) Total collection 27900

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