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Caspion Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 3.5 kilograms of the raw material Jurislon. Budgeted production of Miniwarps for
Caspion Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 3.5 kilograms of the raw material Jurislon. Budgeted production of Miniwarps for the next five months is as follows: August September October November December 22,700 units 21, 400 units 22, 800 units 24,000 units 23, 700 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 10,900 kilograms of Jurision 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 Jurision to be purchased in August is: Multiple Choice $1,658,225 $1,865,325 $1,779,350 $1,509,550
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