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:

Ticket Prices

The cost assigned for admission to an event, such as a movie, concert, or sports event.

Perfectly Inelastic

A market situation where the quantity demanded or supplied is completely unresponsive to changes in price.

Stadium Capacity

The maximum number of spectators that a stadium can accommodate.

Empty Seats

Refers to the number of unoccupied seats in a venue, such as in transportation vehicles, theaters, or event spaces, often used as a metric for efficiency or popularity.