explain in details how to get 52,500
1. Bottled Nature Ltd made the following sales projections (in units) for the next six-month period: There were 20,000 units of finished goods in inventory at the beginning of January. Plans are to have an inventory of finished products that equal 30% of the unit sales for the next month. Eight pounds of materials are required for each unit produced. Each pound of material costs $6. Inventory levels for materials are equal to 25% of the needs for the next month. Materials inventory on January I was 35,000 pounds. Required: a. Prepare production budgets in units from January to April. (9 points) b. Prepare a purchases budget in pounds from January to April and give total purchases in both pounds and dollars for each month. (11 points) a.) \begin{tabular}{|c|c|c|c|c|} \hline & January & February & March & April \\ \hline Sales Units & 125000 & 175000 & 165000 & 140000 \\ \hline Add: Closing Inventory of Finish goods & 52500 & 49500 & 42000 & 58500 \\ \hline Less: Beginning Inventory of Finish Goods & 20000 & 52500 & 49500 & 42000 \\ \hline Unit to be Produced & 157500 & 172000 & 157500 & 156500 \\ \hline \end{tabular} b) \begin{tabular}{|c|c|c|c|c|} \hline & January & February & March & April \\ \hline Unit to be Produced & 157500 & 172000 & 157500 & 156500 \\ \hline Material Required per unit & 8 & 8 & 8 & 8 \\ \hline Total Raw Material Required for production & 1260000 & 1376000 & 1260000 & 1252000 \\ \hline Add: 25% of Next Month & 344000 & 315000 & 313000 & 396000 \\ \hline Less: Beginning Balance & 35000 & 344000 & 315000 & 313000 \\ \hline Matrial Purchase & 1569000 & 1347000 & 1258000 & 1335000 \\ \hline Cost per Pound & $6 & $6 & $6 & $6 \\ \hline Total Cost of Raw Material Purchased & $9,414,000 & $8,082,000 & $7,548,000 & $8,010,000 \\ \hline \end{tabular} Activate Windows