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 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 period's 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 FX-3 (kilograms) (kilograms) Plastic 1.0 Brass 0.5 Aluminum 1.5 2.0 Data relating to the purchase of raw materials are as follows: Projected Inventory Status at the End of the Seventh Period (kilograms) Standard Purchase Purchase Reorder Price per Lot Point Kilogram (kilograms) (kilograms) $0.40 15,000 12,000 0.95 5,000 7,500 0.55 10,500 10,000 On Hand 16,000 9,000 14,000 On Order 15,000 Lead Time in Working Days 10 30 20 Plastic Brass Aluminum 10,000 1. Projected quantities (in kilograms) of each raw material to be issued to the Production Department. Plastic Brass Aluminum Projected raw material issues kg kg kg 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. Plastic Brass Aluminum kg kg kg kg kg kg kg kg kg Average daily usage Beginning inventory Orders received: Ordered in 7th period Ordered in 8th period Subtotal Issues Projected ending inventory balance kg kg kg kg kg kg kg kg kg kg kg kg 4. The payments for purchases of each raw material. Amount Due Period Due Raw Material Day/Period Ordered Day/Period Received Quantity Ordered Plastic Aluminum Plastic Brass kg kg kg kg