Caspion Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 2.5 kilograms of the raw material Jurislon. Budgeted production of Miniwarps for the next five months is as follows: August22,600units??September21,300unitsOctober22,700unitsNovember23,900unitsDecember23,600units?The company wants to maintain monthly ending inventories of Jurislon equal to 20% of the following month's production needs. On July 31, this requirement was not met since only 10,800 kilograms of Jurislon were on hand. The cost of Jurislon is $18.00 per kilogram. The company wants to prepare a Direct Materials Purchase Budget for the next five months.?The total cost of Jurislon to be purchased in August is:
A. $1,017,000
B. $1,208,700
C. $1,839,600
D. $1,014,300
Answer: D
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