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

a. 397,500

Explanation:

The computation is shown below

Particulars                      April             May               June  

Units of Jar                    82,00080,000              75,000  

Garlic in Jar                      5                   5                        5  

Total Garlic requirement 410,000400,000             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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