Answered Essay: Please double check your answer, thank you so much

Lexington Manufacturing makes and sells a product called a Miniwarp. One Miniwarp requires 1.5 kilograms of the raw matenal Jurislon Budgeted production of Miniwarps for the next five months is as follows August September.... October... November December 24,500 units 24.700 units 24.600 units 26,400 units 24,500 units The company wants to maintain monthly ending in entones of Junslon equal to 30% of the follow ng months production needs On July 31, this requ ement was not met s ce 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 Matenals Purchase Budget for the next five months The total cost of Jurislon to be purchased in August is Select one a $149,860 b $252.400 c. $191,460 $147,000 Please double check your answer, thank you so much

Lexington Manufacturing makes and sells a product called a Miniwarp. One Miniwarp requires 1.5 kilograms of the raw material Jurision Budgeted production of Miniwarps for the next five months is as follows: The company wants to maintain monthly ending inventories of Jurision equal to 30% of the following month’s production needs. On July 31, this requirement was not met since only 10, 400 kilograms of Jurision were on hand. The cost of Jurision is $4 00 per kilogram. The company wants to prepare a Direct Materials Purchase Budget for the next five months. The total cost of Jurision to be purchased in August is Select one: a $149, 860 b $252.400 c. $191, 460 $147,000

Expert Answer

 

Total cost of Jurison for the month of August Amount in$
$ cost per unit In Kilograms
Opening stock in the month of August A 10400
Closing stock for the month of August B 7410 1.5 11115 (30% of following month ie, 24700*30%)
Budgeted production for the month of August C 24500 1.5 36750
Total Unit of Jurison to b purchased for the month of August(C+B-A) 37465
Cost per Kilogram 4
Total Cost of Jurison to b purchased for the month of August (37465*4) $149860
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