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10 March, 21:09

G Products, Inc. manufacturers garlic gravy. G's production budget indicated the following units (jars) of gravy to be produced for the upcoming months indicated.

April May June

Units to be produced: 82,000 80,000 75,000

Five grams of garlic are needed for every jar of gravy. G also likes to have enough garlic on hand at the end of the month to cover 10% of the next month's production requirements for garlic. How many grams of garlic should G plan on purchasing during the month of May

a. 397,500

b. 399,500

c. 407,500

d. 437,500

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  1. 10 March, 21:10
    0
    a. 397,500

    Explanation:

    The computation is shown below

    Particulars April May June

    Units of Jar 82,000 80,000 75,000

    Garlic in Jar 5 5 5

    Total Garlic requirement 410,000 400,000 375,000

    Criteria 10% 10% 10%

    Closing inventory 40,000 37,500

    So the number of grams required for purchased during the month is

    = 400,000 + 37,500 - 40,000

    = 397,500
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