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Question 1: G 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 95000 units, September 80000 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, 199000 ounces of plastic were on hand. The cost of plastic is $0.03 per ounce. How much is the ending inventory of plastic to be reported on the company's balance sheet at September 30?
Option 1: $128000
Option 2: $3840
Option 3: $4800
Option 4: $8000
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