Kaypo Company manufactures and sells kids scooter to retail shops. The following data shows a partial...

 

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Kaypo Company manufactures and sells kids scooter to retail shops. The following data shows a partial six-months sales budget for one of the products, Razor Lux, in 2022. All sales are on credit. Jul 5,500 Aug 6,250 Sept 6,000 Oct 6,500 Nov 4,750 Malagma to be purchased in kilograms Malagma to be purchased in dollars Dec 4,250 Sales (units) Kaypo Company manufactures Razor Lux using an alloy of nickel, bronze and zinc known as Malagma. Each unit of Razor Lux requires 4 units of Malagma. One unit of Malagma costs $15 and weighs 100 grams. Kaypo Company has a policy of maintaining an inventory of Malagma equals to 20% of next month's production need. The inventory balance for Malagma as of 30 June 2022 met this requirement. On 30 June 2022, there were 800 units of finished goods inventory. Kaypo Company recently set a policy of maintaining a finished good inventory equals to 2,000 units plus 10% of next month's sales in order to meet the growing customer base. Razor Lux is sold at $150 per unit. Based on Kaypo Company' accounts receivable history, half of the net sales billed in a month are collected during the month. Customers get a 4% discount if payment is received within 10 days after the billing date. Generally, 20% of customers who pay in the month of sales take advantage of this discount policy. 25% is collected in the following month and 20% is collected in the second following month. Required: a. What is the purchase budget for Malagma in kilograms and in dollars for September 2022? Kaypo Company manufactures and sells kids scooter to retail shops. The following data shows a partial six-months sales budget for one of the products, Razor Lux, in 2022. All sales are on credit. Jul 5,500 Aug 6,250 Sept 6,000 Oct 6,500 Nov 4,750 Malagma to be purchased in kilograms Malagma to be purchased in dollars Dec 4,250 Sales (units) Kaypo Company manufactures Razor Lux using an alloy of nickel, bronze and zinc known as Malagma. Each unit of Razor Lux requires 4 units of Malagma. One unit of Malagma costs $15 and weighs 100 grams. Kaypo Company has a policy of maintaining an inventory of Malagma equals to 20% of next month's production need. The inventory balance for Malagma as of 30 June 2022 met this requirement. On 30 June 2022, there were 800 units of finished goods inventory. Kaypo Company recently set a policy of maintaining a finished good inventory equals to 2,000 units plus 10% of next month's sales in order to meet the growing customer base. Razor Lux is sold at $150 per unit. Based on Kaypo Company' accounts receivable history, half of the net sales billed in a month are collected during the month. Customers get a 4% discount if payment is received within 10 days after the billing date. Generally, 20% of customers who pay in the month of sales take advantage of this discount policy. 25% is collected in the following month and 20% is collected in the second following month. Required: a. What is the purchase budget for Malagma in kilograms and in dollars for September 2022?

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To calculate the purchase budget for Malagma in kilograms and in dollars for September 2022we will n... View the full answer