Montrose Instrumentation produces measurement equipment. One component, used in a variety of the company's products, is...
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Montrose Instrumentation produces measurement equipment. One component, used in a variety of the company's products, is critical and the supply chain often breaks. For that reason, Montrose has a policy to hold in Inventory enough of the component to produce three month's worth of sales (one component is used in each unit of product in which it is used). On February 1, the company has 47,000 components in stock. Sales of the units in which the component is used in each of the next six months are estimated to be as follows: February March April May June July 36,500 30,500 32,000 37,550 34,150 46,110 Parts are purchased at a wholesale price of $62 The vendor has a financing arrangement by which Montrose pays 40 percent of the purchase price in the month when the components are delivered and 60 percent in the following month. Montrose purchased 46,000 parts in January. Required: a. Estimate purchases of the component (In units) for February and March. b. Estimate the cash disbursements for the component in February and March. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Estimate the cash disbursements for the component in February and March. Month of Payment February March Total $2,791,240 x $2,488,980 x Montrose Instrumentation produces measurement equipment. One component, used in a variety of the company's products, is critical and the supply chain often breaks. For that reason, Montrose has a policy to hold in Inventory enough of the component to produce three month's worth of sales (one component is used in each unit of product in which it is used). On February 1, the company has 47,000 components in stock. Sales of the units in which the component is used in each of the next six months are estimated to be as follows: February March April May June July 36,500 30,500 32,000 37,550 34,150 46,110 Parts are purchased at a wholesale price of $62 The vendor has a financing arrangement by which Montrose pays 40 percent of the purchase price in the month when the components are delivered and 60 percent in the following month. Montrose purchased 46,000 parts in January. Required: a. Estimate purchases of the component (In units) for February and March. b. Estimate the cash disbursements for the component in February and March. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Estimate the cash disbursements for the component in February and March. Month of Payment February March Total $2,791,240 x $2,488,980 x
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