Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pharoah, Inc. makes and sells a single product, buckets. It takes 20 ounces of plastic to make one bucket. Budgeted production of buckets for the

image text in transcribed

Pharoah, Inc. makes and sells a single product, buckets. It takes 20 ounces of plastic to make one bucket. Budgeted production of buckets for the next three months is as follows: August 92000 units, September 79000 units, October 64000 units. The company wants to maintain monthly ending inventories of plastic equal to 10% of the following month's production needs. On August 31, 190000 ounces of plastic were on hand. The cost of plastic is $0.02 per ounce. How much is the ending inventory of plastic to be reported on the company's balance sheet at September 30? O $3160 O $7900 O $128000 O $2560

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions