Hargrow, Inc

question 28

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 buckets.The company wants to maintain monthly ending inventories of plastic equal to 10% of the following month's production needs.On August 31^st, 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:

Factor Analysis

An analytical method which aims to detect foundational factors or variables explaining the correlation patterns among observed variables.

Heredity

The passing of traits or characteristics from parents to offspring through genes.

Environmental-Mold Trait

A characteristic or tendency believed to be shaped by one's surroundings and experiences.

Constitutional Traits

Characteristics or qualities of an individual that are considered to be inherent or innate, often relating to physical constitution.