Reference no: EM132989229

Question - Becker Enterprise expects sales of 20,000 units of T1 in September. T1 is its most popular high-performance desktop model. The sales manager is confident that, between October and December, the total sales will experience a 50% growth rate each month from the month before. Each unit requires 40 sets of the Alpha-5 chip. The firm has a policy to maintain inventory at the end of each month equal to 1% of the following month's estimated sales. The same policy applies to the chips and components required to assemble the finished product.

Required - Show solutions in good form

1. What is the budgeted production (in units) for each of the months September, October, and November?

2. How many sets of Alpha-5 does the company plan to purchase in September and in October?

Dockille, Inc., is preparing its budget for the second quarter of the calendar year. The following monthly sales data (in units) have been forecasted: April 30,000

May 32,000

June 36,000

July 40,000

August 50,000

Additional information:

Desired ending inventory each month-Finished goods: 30% of next month's sales

Desired ending inventory each month-Raw materials: 25% of next month's production needs

Number of raw material units required per unit of finished product: 4

Required: Show solutions in good form

1. How many units of raw materials should be purchased in the 2nd quarter?