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The Miller Company manufactures and sells industrial components. The Christo plant is responsible for producing two components, AD-5 and FX-3. Plastic, brass, and aluminum are

The Miller Company manufactures and sells industrial components. The Christo plant is responsible for producing two components, AD-5 and FX-3. Plastic, brass, and aluminum are used in the production of these two products. The Miller Company has adopted a 13-period reporting cycle in all of its plants for budgeting purposes. Each period is four weeks long and has 20 working days. Experience has shown that adequate inventory levels for AD-5 and FX-3 can be maintained if 40% of the next periods projected sales are on hand at the end of a reporting period. Based on this experience and the projected sales, the Christo plant has budgeted production of 8,000 units of AD-5 and 6,000 units of FX-3 in the eighth period. Production is assumed to be uniform for both products within each four-week period. The raw material specifications for AD-5 and FX-3 are as follows: AD-5 (kilograms) FX-3 (kilograms) Plastic 2.0 1.0 Brass 0.5 Aluminum 1.5 Data relating to the purchase of raw materials are as follows: Projected Inventory Status at the End of the Seventh Period (kilograms) Purchase Price per Kilogram Standard Purchase Lot (kilograms) Reorder Point (kilograms) On Hand On Order Lead Time in Working Days Plastic $ 0.40 15,000 12,000 16,000 15,000 10 Brass 0.95 5,000 7,500 9,000 30 Aluminum 0.55 10,500 10,000 14,000 10,000 20 The sales of AD-5 and FX-3 vary somewhat from month to month. However, the safety stock incorporated into the reorder point for each of the raw materials is adequate to compensate for variations in the sales of the finished products. Raw material orders are placed the day the quantity on hand falls below the reorder point. Christo plants suppliers are very dependable, so the given lead times are reliable. The outstanding orders for aluminum and plastic are due to arrive on the fourth and tenth working days of the eighth period, respectively. Payments for all raw material orders are remitted in the month of delivery. Required: The Christo plant is required to submit a report to Miller Company corporate headquarters, summarizing the projected raw materials activities, before each period commences. The data for the eighth-period report are being assembled. Determine the following items for plastic, brass, and aluminum for inclusion in the eighth-period report: 1. Projected quantities (in kilograms) of each raw material to be issued to the Production Department. 2.&3. Projected quantities (in kilograms) of each raw material ordered and the date (in terms of working days) the order is to be placed. The projected inventory balance (in kilograms) of each raw material at the end of the period. 4. The payments for purchases of each raw material.

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