Roaming Vehicles Company manufactures buggies. Manufacturing a buggy takes 20 units of wood and 1 unit of steel. Scheduled production of buggies for the next two months is 500 and 600 units, respectively. Beginning inventory is 4,000 units of wood and 30 units of steel. The ending inventory of wood is planned to decrease 500 units in each of the next two months, and the steel inventory is expected to increase 5 units in each of the next two months. What is the number of units of wood that need to be purchased by Roaming Vehicles Company during the first month?

a.500 units

b.1,000 units

c.9,500 units

d.10,000 units

2.

The following forecasted sales pertain to Spyware Corporation:

Month	Sales
September	$40,000
October	50,000
November	30,000
December	20,000

Collection pattern: 65 percent in month of sale 35 percent in month following sale

Accounts receivable as of August 31	$7,000
Finished goods inventory as of August 31	1,500 units

Spyware Corporation has a selling price of $2.50 per unit and expects to maintain ending inventories equal to 25 percent of the next month's sales. How many dollars are expected to be collected in December?

a.$37,000

b.$23,500

c.$26,500

d.$30,500