Bake Time Makes and Sells Baking Pans The Company Wants to Maintain Monthly Ending Inventories of Aluminum

question 9

Multiple Choice

Bake Time makes and sells baking pans.Each pan uses 0.70 pounds of aluminum.Budgeted production and sales of pans in units for the next five months is as follows: $$\begin{array} { | l | c | c | c | c | c | } \hline & \text { June } & \text { July } & \text { August } & \text { September } & \text { October } \\\hline \text { Budgeted production } & 22,180 & 21,940 & 24,940 & 26,240 & 23,720 \\\text { Budgeted sales } & 22,400 & 21,300 & 24,500 & 26,700 & 24,400 \\\hline\end{array}$$ The company wants to maintain monthly ending inventories of aluminum equal to 15% of the following month's budgeted production needs, and monthly inventories of pans equal to 20% of the number needed for next month's sales.The cost of aluminum is $0.85 per pound.How much is the cost of budgeted material purchases for August?

• A)$14,693
• B)$17,595
• C)$14,955
• D)None of the answer choices are correct.

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