Reference no: EM132594322

Jiklo limiited has following sales budget for next 4 month;

                         May                  June                  July                  August

Units                   4000              5000               6000               6500

Sales                      20                   25               33                    39

• Each widget requires 25 grams of palladium, which cost $ 70 per gram.
• 63% of accounts receivable are collect in month of sale, 34% are collected in follwoing month and 3 % are epxected to go bad. A 2% discount is given to customers who pay within the month of sale.
• Raw materials inventory at the end of each month should be 50% in following month productiion. 30% of cost of raw material purchase is paid in the month of purchase.
• Finished goods inventory at the end of each mont hshould be 24% . At the begining of may, invenotry is expecte to be 3,000 units.

Question 1: Calculate the number of widgets that needs to be produced in June.