Be sure to READ each question AND be sure you have provided all of the informati

Question

Be sure to READ each question AND be sure you have provided all of the information required. Be sure to denote where your answer is located-plenty of white space is provided. In addition, to ensure that you receive maximum credit (including partial credit), be sure to SHOW ALL WORK, including any work performed to arrive at multiple choice answers. Jake Corporation makes a product that is very popular in the summer. Thus sales peak in June each year leading to higher production levels in April and May as shown below: APRIL MAY JUNE TOTAL Direct Materials Budget 60,000 70,000 40,000 170,000 Each unit needs two springs. The springs can be difficult to get at times, so the company has determined that it must have 20% of the required 24,000 springs in inventory at the beginning of April. Jake has determined it needs 18,000 springs at the end of June. springs at the start of each period. The Company had How many gages are needed to be purchased to meet the production schedule for the quarter? a) 170,000 b) 334,000 1) c 340,000 d) 364,000 If the Springs cost $1.50 each and Jake pays for half of the springs in the month they were purchased and half in the following month, how much did they pay for the springs during the months of April and June. Accounts Payable at the beginning of April was $80,000 all of which was paid in April. EXTRA CREDIT: What is Accounts Payable at the end of June? 2)

Explanation / Answer

1) Purchase budget :

so answer is b) 334000

2) Payment distribution :

Account payable on june 30 is $67500.

April May June Quarter Production unit 60000 70000 40000 170000 Raw material per unit 2 2 2 2 Raw material for production 120000 140000 80000 340000 Add: Desired ending inventory 14000 8000 18000 18000 Total needs 134000 148000 98000 358000 Less: Beginning inventory (24000) (14000) (8000) (24000) Purchase 110000 134000 90000 334000

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