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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
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
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