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:

Lease

A contract for the possession and use of land or other property, including goods, on one side, and a recompense of rent or other income on the other; a conveyance to a person for life, or years, or at will in consideration of a return of rent or other recompense.

Economic Duress

A situation where a party is forced to enter into a contract under severe financial pressure, making the agreement voidable.

Gallium Arsenide

A compound of gallium and arsenic that is used in semiconductor devices, including integrated circuits and photovoltaic cells.

Monopoly

A market structure characterized by a single seller, offering a unique product or service without close substitutes, leading to control over pricing.