Gregor Company is preparing a budget to determine the amount of part G12 to produce for the first quarter of the year, and the amount of resin to purchase for part G12. The company desires to have 30% of the next month's estimated sales of G12 in inventory at the end of each month. Gregorhas a very reliable supplier of resin and therefore desires an ending inventory of only 10% of resin needs for the next month's production. Each unit of G12 requires three quarter of a three quarter of a

pound of resin. Projected sales of G12 for January, February, and March are 50,000 units, 100,000 units, and 60,000 units, respectively.

Requirements

(a)	How many units of part G12 will Gregor budget to produce in January and February?
(b)	How many pounds of resin will Gregor budget to purchase in January?

Gregor Company is preparing a budget to determine the amount of part G12 to produce for the first quarter of the year, and the amount of resin to purchase for part G12. The company desires to have 30% of the next month's estimated sales of G12 in inventory at the end of each month. Gregor has a very reliable supplier of resin and therefore desires an ending inventory of only 10% of resin needs for the next month's production. Each unit of G12 requires three quarter of a pound of resin. Projected sales of G12 for January, February, and March are 50,000 units, 100,000 units, and 60,000 units, respectively. Requirements (a) How many units of part G12 will Gregor budget to produce in January and February? (b) How many pounds of resin will Gregor budget to purchase in January? Requirement (a) How many units of part G12 will Gregor budget to produce in January and February? Select the labels and enter the amounts to compute the units to be produced for the months of January and February January February Units needed Less: Units to be produced Requirement (b) How many pounds of resin will Gregor budget to purchase in January? - I-L