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Caspion Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 4.5 kilograms of the raw material Jurislon. Budgeted production of Miniwarps for
Caspion Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 4.5 kilograms of the raw material Jurislon. Budgeted production of Miniwarps for the next five months is as follows: August September October November December 24,600 units 23,300 units 24, 700 units 25,900 units 25,600 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 12,800 kilograms of Jurislon were on hand. The cost of Jurislon is $27 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: Multiple Choice 0 O $2,988,900 0 $3,209,490 0 $3,555,090 O $2,722,680
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