Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Eliot Sprinkler Systems produces equipment for lawn irrigation. One of the parts used in selected Eliot equipment is a specialty nozzle. The budgeting team is

image text in transcribed
Eliot Sprinkler Systems produces equipment for lawn irrigation. One of the parts used in selected Eliot equipment is a specialty nozzle. The budgeting team is now determining the purchase requirements and monthly cash disbursements for this part. Eliot wishes to have in stock enough nozzles to use for the coming month. On August 1, the company has 18,300 nozzles in stock, although the latest estimate for August production indicates a requirement for only 18,000 nozzles. Total uses of the nozzle are expected to be 17,700 in September and 18,540 in October. Nozzles are purchased at a wholesale price of $23. Eliot pays 25 percent of the purchase price in cash in the month when the parts are dellvered. The remaining 75 percent is paid in the following month. Eliot purchased 36,000 parts in July. Required: a. Estimate purchases of the nozzle (in units) for August and September. b. Estimate the cash disbursements for nozzles in August and September. Complete this question by entering your answers in the tabs below. Estimate the cash disbursements for nozzles in August and September

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing

Authors: Alan H. Millichamp

8th Edition

082645500X, 9780826455000

More Books

Students also viewed these Accounting questions