Pardise Company plans the following beginning and ending inventory levels (in units) for July:

Two units of raw material are needed to produce each unit of finished product.

-If 500,000 finished units were to be manufactured during July, the units of raw material needed to be purchased would be:

Question

Pardise Company plans the following beginning and ending inventory levels (in units) for July:

Two units of raw material are needed to produce each unit of finished product.

-If 500,000 finished units were to be manufactured during July, the units of raw material needed to be purchased would be:

Quizplus · Accepted Answer

To determine the expected cash collections by month, we need to break down the budgeted sales by month and apply the collection percentages given.

For January: 
$20,000 from November sales * 60% = $12,000 
$50,000 from December sales * 60% = $30,000 
Total collections in January: $42,000

For February: 
$20,000 from November sales * 30% = $6,000 
$50,000 from December sales * 30% = $15,000 
$40,000 from January sales * 60% = $24,000 
Total collections in February: $45,000

For March: 
$40,000 from January sales * 30% = $12,000 
$40,000 from February sales * 60% = $24,000 
Total collections in March: $36,000

The pattern repeats for the rest of the budgeted sales, resulting in the following expected collections:

January: $42,000 
February: $45,000 
March: $36,000 
April: $30,000 
May: $24,000 
June: $15,000

To determine the units of raw material needed to be purchased in July, we need to use the production formula:

Raw materials needed = Units to be produced * Raw material needed per unit

Since the question does not provide us with the raw material needed per unit, we cannot solve this problem.

Pardise Company Plans the Following Beginning and Ending Inventory Levels