need help with 11 a) b) c) and d) using info below

required units production

question 11 to be solved below. the higlighted number is the given answer that is correct

Garden Sales, Inc., sells garden supplies. Management is planning its cash needs for the second quarter. The company usually has to borrow money during this quarter to support peak sales of lawn care equipment, which occur during May. The following information has been assembled to assist in preparing a cash budget for the quarter: a. Budgeted monthly absorption costing income statements for April-July are: April May June July $ 710,000 $ 880,000 $ 590,000 $ 490,000 497,000 616,000 413,000 343,000 213,000 264,000 177,000 147,000 Sales Cost of goods sold Gross margin Selling and administrative expenses : Selling expense Administrative expense* Total selling and administrative expenses Net operating income 89,000 108,000 70,000 49,000 49,500 67,200 43,400 47,000 138,500 175,200 113,400 96,000 $ 74,500 $ 88,800 $ 63,600 $ 51,000 *Includes $31,000 of depreciation each month. Cash Accounts Receivable Inventory Total current assets Plant Assets, net Total Assets Garden Sales, Inc Balance Sheet March 31 $60,000 Accounts Payable $130,900 $252,800 $99,400 Common Stock $100,000 $412,200 Retained Earnings $531,300 350,000 Total SH Equity $631,300 $762,200 Total liabilities & SH Equity $ 762,200 June 118,000 Collections on Sales: Cash sales February credit sales: March credit sales: April credit sales: May credit sales: June credit sales: Total cash collections Revised Cash Collection Schedule April May 142.000 176,000 44,000 162,400 46,400 142.000 369.200 176,000 Quarter 436,000 44,000 208.800 568,000 633,600 118,000 2.008.400 56,800 457,600 118,000 750.400 490.400 767.600 July 343,000 Revised Inventory Purchasing Budget April May Budgeted cost of goods sold 497,000 616,000 Add desired ending Inventory 92,400 61,950 Total needs 589,400 677,950 Less beginning merchandise inventory 99,400 92,400 Required inventory purchases 490.000 585.550 June 413,000 51,450 464,450 61,950 402.500 4) The company has been postponing payments to supplier for quite some time such that the president does not believe they can change their payment policies. (Percentages used in CONNECT will not change). The president is hoping the reduced inventory amounts will be enough to conserve cash. Using the same payment policy from CONNECT, complete the Revised Cash Disbursements Schedule below. Revised Cash Disbursements for Inventory April May June Beginning accounts payable 130,900 April purchases 245,000 245,000 May purchases 292,775 292,775 June purchases 201,250 Total cash disbursements for Inventory 375.900 537/775 494.025 Quarter 130,900 490,000 585,550 201,250 1.407.700 -0- Cash Disbursements for Selling & Administrative Expenses April May June Beginning accounts payable April expenses 86000 21500 May expenses 115360 28840 June expenses 65920 Total cash disbursements for S & A expenses 86000 136860 94760 Quarter 0 107500 144200 65920 317620 June 97,465 750,400 847,865 Quarter 60,000 2,008,400 2,068,400 494,025 94,760 Garden Sales, Inc. Cash Budget For the Quarter Ended June 30 April May Beginning cash balance 60,000 50,500 Add collections from customers 490,400 767,600 Total cash available 550,400 818,100 Less cash disbursements: Purchases for inventory 375,900 537,775 Selling & Administrative expenses 86,000 136,860 Land purchases 46,000 Dividends paid 38,000 Total cash disbursements 499,900 720,635 Excess deficiency) of cash available over disbursements 50,500 97,465 Financing: Borrowings 2,000 Repayments (2,000) Interest (40) Total financing 2,000 (2,040) Ending cash balance 52.500 95.425 1,407,700 317,620 46,000 38,000 1,809,320 588,785 259,080 259,080 2,000 (2,000) (40) (40) 259.040 259.080 Cash Accounts Receivable Inventory Total current assets Garden Sales, Inc Balance Sheet June 30 259,080 Accounts Payable 217,730 424,400 Loan Payable (if necessary) 51,450 Total Liabilities 217,730 734,930 Common Stock 100,000 Retained Earnings 720,200 303,000 Total SH Equity 820,200 1,037,930 Total liabilities & SH Equity 1,037,930 Plant Assets, net Total Assets Production Budget April May 710,000 880,000 60 60 11.834 14667 June 590,000 60 9834 Quarter 2,180,000 60 36,334 Budgeted Sales in $s Average price per unit Budgeted unit sales Add Desired units of ending Finished Goods Inventory Total needs Less: Units of beginning Finished Goods Inventory Required production in units 2.934 14.768 1,967 16,634 1,634 11,468 6,535 42.869 1.967 2.367 12,401 2.934 13,700 7.268 35,601 9,501 11) The production process for Garden Sales requires 3 board feet of wood and 0.8 pounds of metal per unit. Garden Sales typically maintains raw material inventory level of 20% of next month's production requirement. Use this information to prepare the Direct Materials Budget for wood and metal. Remember, ending finished goods inventory must equal 20% of next month's sales requirements. a) Beginning Wood Inventory: For wood, based on April production levels, how many board feet of wood will the company have in their April beginning raw material in inventory? June b) Ending Wood Inventory: Assume Garden Sales wants to end the quarter with 4,800 board feet of wood in their raw material inventory. (This will be your ending inventory number for June). Complete the Direct Materials Budget for wood below. Report board feet in whole numbers (round up). Assume Garden Sales can purchase Wood for $0.20 a board foot. Direct Materials Budget - Wood April May Quarter Required production in units * 3 board feet per unit x3 x3 x3 3 Board feet of wood needed to meet production. Add: Desired ending raw materials inventory - wood. 4.800 4.800 Total board feet of wood raw materials needed Less: Beginning raw materials inventory Board feet of wood raw materials to be purchased 38,581 Cost per board foot 0.20 0.20 0.20 0.20 Wood purchases in dollars c) Payments for Wood Purchases: Assume the same payment patterns as used from your connect question and in item 4 above. Calculate the payments necessary for wood purchases for the quarter using the schedule below. Assume 5% of the March 31 accounts payable balance relates to wood purchases. Quarter Revised Cash Disbursements for Inventory April May June Beginning accounts payable April purchases May purchases 3.858 June purchases Total cash disbursements for Wood d) Garden Sale has the opportunity to purchases all the wood they need for the quarter at one time at the beginning of April. This would allow them to purchase wood at a reduced cost of $0.18 per foot if they can purchase more than 60,000 board feet. Garden Sales estimates they would have to pay $400 a month storage to warehouse the entire supply of wood. Assume Garden Sales has sufficient cash to pay for all its wood (no borrowing or interest required), should they buy the quarter's requirement of wood all at once in April? Show your calculations and explain your