Hargrow, Inc

question 10

Multiple Choice

Hargrow, Inc.makes and sells a single product, buckets.It takes 30 ounces of plastic to make one bucket.Budgeted production of buckets for the next three months is as follows: August 90,000 units, September 75,000 units, October 65,000 units.The company wants to maintain monthly ending inventories of plastic equal to 10% of the following month's production needs.On August 31, 195,000 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?

• A)$195,000
• B)$5,850
• C)$6,750
• D)$7,500

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Definitions:

Food

Any nutritious substance that people or animals eat or drink in order to maintain life and growth.

Special Privileges

Exceptional rights, advantages, or immunities granted to individuals or groups, often beyond what is common.

Deviance

Occurs when someone departs from a norm and evokes a negative reaction from others.

Norm-breaking

Refers to actions or behaviors that deviate from widely accepted social norms or standards.