QUESTION 5:

Selva Inc. makes keyboards for tablets, and packages them in crates containing 50 keyboards per crate. Planned production in units for the first three months of the coming year is:

January	45,000
February	55,000
March	60,000

Each keyboard requires 6 litres of chemicals and one plastic crate. Company policy requires that ending inventories of raw materials for each month be 20% of the next month's production needs. That policy was met for the ending inventory of December in the prior year. The cost of one litre of chemicals is $2.00. The cost of one crate is $1.60.

Required:

1. the ending inventory of chemicals in litres for December of the prior year, and for January and February. What is the beginning inventory of chemicals for January? Round your answers to the nearest whole litre.

Ending inventory for December	_____________________litres
Ending inventory for January	_____________________litres
Ending inventory for February	_____________________litres
Beginning inventory for January	_____________________litres

2.a direct materials purchases budget for chemicals for the months of January and February. Round Dollar purchases to the nearest dollar. Round all the other values to the nearest whole unit. Do not include a multiplication symbol as part of your answer.

Selva Inc. Direct Materials Purchases Budget - Chemicals in Litres For the Months of January and February January February Production in units Litres per unit Litres for production Desired ending inventory Needed Less: Beginning inventory Purchases Price per litre Dollar purchasesSelva Inc. Direct Materials Purchases Budget - Crates For the Months of January and February January February Production in units Crates per unit Crates for production Desired ending inventory Needed Less: Beginning inventory Purchases Price per crate Dollar purchasesBayco Wholesale Inc. Schedule of Cash Receipts For March and April March April Cash sales Payments on account: From January credit sales: X From February credit sales: X From March credit sales: X X From April credit sales: X Cash receiptsFein Company Schedule of Cash Payments For August Payments on accounts payable: From July purchases From August purchases Direct labour payments: From July 3000 0 0 0 From August Overhead Loan repayment Cash payments