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Yakvenalex [24]
3 years ago
6

August 23,800 units September 22,500 units October 23,900 units November 25,100 units December 24,800 units The company wants to

maintain monthly ending inventories of Jurislon equal to 20% of the following month's production needs. On July 31, this requirement was not met since only 12,000 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:
Business
1 answer:
Paul [167]3 years ago
7 0

Answer:

the amount of jurison required per unit is not given, so I looked for similar questions and found that 3 kilograms of jurison are needed per unit produced:

total units to be produced during August = 23,800

materials needed per unit = 3

raw materials required for production = 23,800 x 3 =     71,400 kilograms

- beginning inventory =                                                    (12,000) kilograms

+ ending inventory required = 22,500 x 3 x 20% =        <u> 13,500 kilograms</u>

total raw materials requirement =                                    72,900 kilograms

purchase price per kilogram of jurison =                         <u>$19 per kilogram</u>

total cost of raw materials purchases in August =                 $1,385,100

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