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

question 80

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 budgeted raw materials to be reported on the company's balance sheet at August 31?

• A)$2,342
• B)$3,936
• C)$2,755
• D)$3,346

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Definitions:

Carbon Dioxide

Created both by the burning of organic matter and the act of respiration, this gas, which neither has color nor a detectable odor, is essential for plant photosynthesis.

Phosphorus Sink

An ecosystem or part of an ecosystem that absorbs more phosphorus than it releases, often leading to phosphorus accumulation.

Mineable Phosphate Rocks

Rock formations that contain substantial amounts of phosphate minerals, which are mined for use as fertilizers and other chemical products.

Marine Sediments

Deposits of organic and inorganic particles that accumulate on the ocean floor.