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Caspion Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 8.5 kilograms of the raw material Jurislon. Budgeted production of Miniwarps for
Caspion Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 8.5 kilograms of the raw material Jurislon. Budgeted production of Miniwarps for the next five months is as follows: 24,100 units August September October November December 22,800 units 24,200 units 25,400 units 25,100 units The company wants to maintain monthly ending inventories of Jurislon equal to 25% of the following month's production needs. On July 31, this requirement was not met since only 12,300 kilograms of Jurislon were on hand. The cost of Jurislon is $22 per kilogram. The company wants to prepare a Direct Materials Purchase Budget for the next five months. The total cost of Jurision to be purchased in August is: Multiple Choice O O O O $4,506,700 $5,572,600 $1,488,850 $5,302,000
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