Question 31 Kelvin Company produces and sells Product AlphaB. To guard against stockouts, the company requires that 25% of the next month's sales be on hand at the end of each month. Budgeted sales of Product AlphaB over the next four months are as follows. June is the first month of the company and hence, there are no inventories, accounts payables or receivables. June July August September Budgeted sales in units 20.000 30,000 40,000 50,000 1. Compute the units of production in July. (keep in mind you may need information from the month of August also). Assume a std. qty of 3 lbs/unit of FG and a std. price of $3/lb of DM. DM ending inventory has to be kept at 20% of next month's production needs of DM. The company pays the suppliers 70% - 30% in the first and second months of purchase. Assume a wage rate of $15/hour and a standard of 3 hours/unit of FG. 2. Calculate the DM purchases and cash needed to pay for DM purchases in June. 3. Calculate the DL hours, DL cost and cash needed for paying the employees in June