Question

The total cost of Jurislon to be purchased in August is: Multiple Choice $1,839,600 $1,208,700 $1,014,300 $1,017,000

Answer 1

Answer:  $‭1,014,300‬

Explanation:

The company wants to maintain 20% of the next month's needs as ending inventory.

One Miniwap requires 2.5 kg of Jurision to be made.

Materials purchased is;

= Ending inventory + Materials used - Begining inventory

Ending Inventory;

= 20% of September Jurision

= 20% * 21,300 * 2.5

= 10,650 kg

Materials used

= 2.5 kg * August Miniwaps

= 2.5 * 22,600

= 56,500 kg

Materials Purchased = 10,650 + 56,500 - 10,800

= 56,350‬ kg

Cost of Jurision is $18 per kilo

= 56,350‬ * 18

= $‭1,014,300‬