Receivables are collected 40% in the month of sale, 45% in the month following sale, and 15% in the second month following sale.

Budgeted sales: July $28,000, August $24,000, September $30,000

Determine the September ending receivables balance:

1.b. The budgeted sales volume is 8,700 units. Inventories planned for the period :

Beginning Ending

Direct material 8,000 8,500

Finished goods 2,400 2,800

Each unit of finished goods requires four units of direct material in production.

Work in process inventory is zero at the beginning and end of the period.

Determine the number of units of direct material to be purchased.