Crafty Cathy Products Inc manufactures a product sold in most craft stores which requires non-soluble glue as one of the key ingredients. The company has already estimated that it needs to produce the following number of units of product for the second quarter of 2013: April 75,000 units May 90,000 units June 84,000 units Each unit requires .5 ounces of glue at a cost of $.30 an ounce. The
company has determined that it needs 15 percent of next month's raw material needs on hand at the end of each month. The cost of the glue that should be purchased in May is:
A) $13,365
B) $13,500
C) $15,390
D) $13,635
A
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