Total cost of jurislon

Assignment Help Accounting Basics
Reference no: EM13129256

Castil Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 2.6 kilograms of the raw material Jurislon. Budgeted production of Miniwarps for the next five months is as follows:

August 19,400 units
September 20,700 units
October 19,900 units
November 20,400 units
December 21,400 units

The company wants to maintain monthly ending inventories of Jurislon equal to 20% of the following month's production needs. On July 31, this requirement was not met since only 8,700 kilograms of Jurislon were on hand. The cost of Jurislon is $4.8 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:

a) $252,019.2

b) $293,779.2

c) $242,112

d) $335,539.2

Reference no: EM13129256


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