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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 desired ending inventory of Jurislon for the month of September is:
A. $5,550
B. $21,315
C. $6,090
D. $19,425

1 Answer

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Casper Corporation's desired ending inventory of Jurislon cannot be calculated without the budgeted production figures for September, but typically, it would involve multiplying the forecasted production amount of Miniwarps by the 3.5 kilograms of Jurislon needed per Miniwarp.

To calculate the desired ending inventory of Jurislon for Casper Corporation, it's necessary to look at the forecasted production of Miniwarps for September and account for the amount of Jurislon needed per Miniwarp. However, the data for budgeted production is missing from the question. Without the budgeted production figures of Miniwarps for September, we cannot complete the calculation for the desired ending inventory of Jurislon.

To complete the calculation, we would typically multiply the number of Miniwarps planned for production in September by the 3.5 kilograms of Jurislon required per Miniwarp. This would give the total kilograms of Jurislon needed for production. We would then need to know the desired inventory level for the end of September, which should ideally account for the needs of the following month's production and any company policy regarding safety stock levels.

Due to missing information, we cannot determine which of the options (A, B, C, or D) is correct for the desired ending inventory value for Jurislon in monetary terms.

User Andreas Krueger
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