Ellot Sprinkler Systems produces equipment for lawn Irrigation. One of the parts used In selected...
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Ellot Sprinkler Systems produces equipment for lawn Irrigation. One of the parts used In selected Ellot equipment is a speclalty nozzle. The budgeting team is now determining the purchase requirements and monthly cash disbursements for this part. Ellot wishes to have in stock enough nozzles to use for the coming month. On August 1, the company has 18,300 nozzles in stock, although the latest estimate for August production Indicates a requirement for only 18,000 nozzles. Total uses of the nozzle are expected to be 17,700 in September and 18,540 In October. Nozzles are purchased at a wholesale price of $23. Ellot pays 25 percent of the purchase price in cash in the month when the parts are delivered. The remaining 75 percent is paid in the following month. Ellot purchased 36,000 parts in July. Required: a. Estimate purchases of the nozzle (In units) for August and September. b. Estimate the cash disbursements for nozzles in August and September. Complete this question by entering your answers in the tabs below. Estimate purchases of the nozzle (in units) for August and September
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