Question

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

Answer 1

a. 397,500

Step-by-step 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