Caspion Corporation Makes and Sells a Product Called a Miniwarp

question 130

Multiple Choice

Caspion Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 2.5 kilograms of the raw material Jurislon. Budgeted production of Miniwarps for the next five months is as follows:
The company wants to maintain monthly ending inventories of Jurislon equal to 20% of the following month's production needs. On July 31, this requirement was not met since only 10,800 kilograms of Jurislon were on hand. The cost of Jurislon is $18.00 per kilogram. The company wants to prepare a Direct Materials Purchase Budget for the next five months.
-The total cost of Jurislon to be purchased in August is:

• A) $1,839,600
• B) $1,014,300
• C) $1,208,700
• D) $1,017,000

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Definitions:

Male Athletes

Individuals who engage in competitive physical sports and activities and are categorized by their gender as male.

Self-centered

A personality trait that involves prioritizing one's own needs and interests above those of others.

Just-world Phenomenon

The cognitive bias that leads people to believe that the world is inherently fair, causing them to rationalize an unjust situation as deserved by the victim.

Fundamental Attribution Error

A psychological bias that causes people to overemphasize personal characteristics and ignore situational factors in judging others' behavior.