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Whiskey Peak Chemical Corporation makes and sells a product called Jack-Soap. Jack-Soap requires 3.5 kilograms of the raw material Durien. Budgeted production of Jack-Soap for
Whiskey Peak Chemical Corporation makes and sells a product called Jack-Soap. Jack-Soap requires 3.5 kilograms of the raw material Durien. Budgeted production of Jack-Soap for the next five months is as follows: August 24,500 units September 23,200 units October 24,600 units November 25,800 units December 25,500 units The company wants to maintain monthly ending inventories of Durien equal to 25% of the following month's production needs. On July 31 this requirement was not met since only 12,700 kilograms of Durien were on hand. The cost of Durien is $26 per kilogram. The company wants to prepare a direct materials budget for the next five months. The total cost of Durien to be purchased in August is: Whiskey Peak Chemical Corporation makes and sells a product called Jack-Soap. Jack-Soap requires 3.5 kilograms of the raw material Durien. Budgeted production of Jack-Soap for the next five months is as follows: August 24,500 units September 23,200 units October 24,600 units November 25,800 units December 25,500 units The company wants to maintain monthly ending inventories of Durien equal to 25% of the following month's production needs. On July 31 this requirement was not met since only 12,700 kilograms of Durien were on hand. The cost of Durien is $26 per kilogram. The company wants to prepare a direct materials budget for the next five months. The total cost of Durien to be purchased in August is: $2,427,100. $2,757,300. $2,627,950. $2,229,500
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