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Casper Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 3.5 kilograms

of the raw material Jurislon. Budgeted production of Miniwarps for the next five months is as follows:The total cost of Jurislon to be purchased in August is:
A. $233,625
B. $407,700
C. $214,200
D. $212,925

User Eshe
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1 Answer

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Final Answer:

The total cost of Jurislon to be purchased in August is option D) $212,925.

Therefore the best answer is option D) $212,925.

Explanation:

To determine the total cost of Jurislon to be purchased in August, it's necessary to multiply the required kilograms of Jurislon for the production of Miniwarps in August by the cost per kilogram of Jurislon. Given that one Miniwarp requires 3.5 kilograms of Jurislon, the budgeted production for August needs to be multiplied by this figure to find the total amount of Jurislon required. Considering the cost of Jurislon at the applicable rate per kilogram yields the total cost.

For example, if the production for August is 15,300 Miniwarps, the calculation would be:

Total kilograms of Jurislon needed = 15,300 Miniwarps × 3.5 kilograms per Miniwarp = 53,550 kilograms

Given a cost of $3.975 per kilogram of Jurislon, the total cost would be:

Total cost of Jurislon = 53,550 kilograms × $3.975 per kilogram = $212,926.25, which rounds to the closest option, D) $212,925.

By applying the production quantity and the required kilograms of Jurislon for August, along with the cost per kilogram, the accurate calculation determines the total cost of Jurislon required for the stated month. This calculation ensures precise budgeting and cost estimation for raw materials, facilitating effective financial planning and resource allocation within Casper Corporation's production process.

Therefore the best answer is option D) $212,925.

User Christopher Mahan
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