$6,090 $21,315 $19,425 $5,550 Vaplot Corporation makes and sells a boxed candy c

Question

$6,090 $21,315 $19,425 $5,550 Vaplot Corporation makes and sells a boxed candy called Timewarp. One box of Timewarp requires 3.5 kilograms of the flavor ingredient, Lason B. Budgeted production of Timewarps for the next five months is as follows: The company wants to maintain monthly ending inventories of Lason B equal to 10% of the following month's production needs. On July 31, this requirement was not met since only 6,900 kilograms of Lason B were on hand. The cost of Lason B is $3.00 per kilogram. The company wants to prepare a Direct Materials Purchase Budget for the next five months. The desired ending inventory of Lason B for the month of September is:

Explanation / Answer

desired ending inventory of Lason B for the month of September = 10%*20300*3.5*3 =$21315

$21,315

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