Answer:
Total cost for August= $4,647,725
Explanation:
Giving the following information:
One Miniwarp requires 7.5 kilograms of the raw material Jurislon.
Budgeted production:
August= 23,100 units
September= 21,800 units
The company wants to maintain monthly ending inventories of Juris!on equal to 25% of the following month's production needs.
Beginning inventory in kilograms= 11,300.
The cost of Jurision is $23 per kilogram.
First, we need to determine the total kg needed for production:
Direct material budget (kg):
Sales= 23,000*7.5= 172,500
Desired ending inventory= (21,800*7.5)*0.25= 40,875
Beginning inventory= (11,300)
Total kilograms= 202,075
Total cost for August= 202,075*23= $4,647,725