Cashan Corporation Makes and Sells a Product Called a Miniwarp

question 31

Multiple Choice

Cashan Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 1.5 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 30% of the following month's production needs. On July 31, this requirement was not met since only 10,400 kilograms of Jurislon were on hand. The cost of Jurislon is $4.00 per kilogram. The company wants to prepare a Direct Materials Purchase Budget for the next five months. The desired ending inventory of Jurislon for September is:

• A)$29,640
• B)$29,520
• C)$44,460
• D)$44,280

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Definitions:

Dividend Adjustment

An alteration made to the dividend payout received by shareholders of a mutual fund or an index reflecting a change in the underlying stocks' dividend payouts.

Required Return

The minimum expected return by investors for providing capital to a company, factoring in risk levels.

Dividend Growth Rate

The dividend growth rate is the annual rate at which a company's dividend payments have increased over a specific period of time.

Millennials

The demographic cohort following Generation X, typically defined as those born from the early 1980s to the mid-1990s to early 2000s.