Corporation had estimated beginning materials inventory of 10,000 units, desired ending materials inventory of 25,000...

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Accounting

Corporation had estimated beginning materials inventory of 10,000 units, desired ending materials inventory of 25,000 units, and materials to be used in production of 150,000 units. What are the required materials (in units) that needs to be purchased?
Montrose Instrumentation produces measurement equipment. One component, used in a variety of the company's products, is critical and the supply chain often breaks. For that reason, Montrose has a policy to hold in inventory enough of the component to produce three month's worth of sales (one component is used in each unit of product in which it is used). On February 1, the company has 42,000 components in stock. Sales of the units in which the component is used in each of the next six months are estimated to be as follows:
\table[[February,34,500],[March,28,500],[April,30,000],[May,35,550],[June,32,150],[July,44,110]]
Parts are purchased at a wholesale price of $57. The vendor has a financing arrangement by which Montrose pays 40 percent of the purchase price in the month when the components are delivered and 60 percent in the following month. Montrose purchased 42,000 parts in January. What is the estimate of merchandise to be purchased (in units) for February?
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