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Rudik [331]
3 years ago
8

Caspion Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 2.5 kilograms of the raw material Jurislo

n. Budgeted production of Miniwarps for the next five months is as follows:
August 30,600 units
September 18,800 units
October 31,800 units
November 26,500 units
December 29,000 units
The company wants to maintain monthly ending inventories of Jurislon equal to 17% of the following month's production needs. On July 31, this requirement was not met since only 10,400 kilograms of Jurislon were on hand. The cost of Jurislon is $19 per kilogram. The company wants to prepare a Direct Materials Purchase Budget for the next five months.
The total cost of Jurislon to be purchased in August is:
a) $1,438,310
b) $1,407,710
c) $1,415,700
d) $1,484,210
Business
1 answer:
yan [13]3 years ago
6 0

Answer:

I think it's (B)

I hope that's right

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beginning inventory May           180

expected sales May                   520

ending inventory May                 145

Becker is planning to manufacture 485 tricycles (= 520 + 145 -180)

June:

beginning inventory May           145

expected sales May                   650

ending inventory May                 155

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