Nevis Motors Manufactures a Product Requiring 0

question 74

Multiple Choice

Nevis Motors manufactures a product requiring 0.5 ounces of platinum per unit. The cost of platinum is approximately $360 per ounce; the company maintains an ending platinum inventory equal to 10% of the following month's production usage. The following data were taken from the most recent quarterly production budget:

The cost of platinum to be purchased to support August production is:

• A) $195,840.
• B) $198,000.
• C) $200,160.
• D) $391,680.
• E) None of the answers is correct.

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Definitions:

Contentment

A state of happiness and satisfaction, often resulting from achieving what one desires or values.

Distress

A negative emotional state resulting from perceived threats, challenges, or harm, often leading to discomfort or pain.

Age

The length of time that a person has lived or a thing has existed, often used as a measure of maturity, development, or lifespans.

Central Nervous System

Brain and spinal cord.