Cashan Corporation Makes and Sells a Product Called a Miniwarp

question 33

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:

OEM

Original Equipment Manufacturer; a company that produces parts and equipment that may be marketed by another manufacturer.

No-crank Condition

A situation where an engine does not turn over or crank when the ignition key is turned, indicating a failure in the starting system.

Discharged Batteries

Batteries that have been depleted of their stored electrical energy.

Starter Insulated Terminal

A component of the starter system designed to protect the electrical connections from short circuits or shocks.