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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
Caspion Corporation makes and sells a product called a Miniwarp. One Miniwarp requires kilograms of the raw material Jurislon. Budgeted production of Miniwarps for the next five months is as follows:
tableAugust unitsSeptember unitsOctober unitsNovember unitsDecember units
The company wants to maintain monthly ending inventories of Jurislon equal to of the following month's production needs. On July this requirement was not met since only kilograms of Jurislon were on hand. The cost of Jurislon is $ 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:
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