ABC manufactures a product requiring 0.5 ounces of platinum per unit. The cost of platinum is approximately $150 per ounce; the company maintains an ending platinum inventory equal to 10% of the following month's production usage. The following data were taken from the most recent quarterly production budget: JULY AUGUST SEPTEMBER Planned Production in 1,200 1,309 1,180 units The cost of platinum to be purchased to support August production is: Enter your response without a $ sign or comma, and round to the nearest whole number. You Answered 107,025 Correct Answer 97,208 margin of error +/- 0.5%
ABC manufactures a product requiring 0.5 ounces of platinum per unit. The cost of platinum is approximately $150 per ounce; the company maintains an ending platinum inventory equal to 10% of the following month's production usage. The following data were taken from the most recent quarterly production budget: JULY AUGUST SEPTEMBER Planned Production in 1,200 1,309 1,180 units The cost of platinum to be purchased to support August production is: Enter your response without a $ sign or comma, and round to the nearest whole number. You Answered 107,025 Correct Answer 97,208 margin of error +/- 0.5%
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 15E: Palmgren Company produces consumer products. The sales budget for four months of the year is...
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![ABC manufactures a product requiring 0.5 ounces of platinum per unit. The cost of platinum is
approximately $150 per ounce; the company maintains an ending platinum inventory equal to 10% of
the following month's production usage. The following data were taken from the most recent
quarterly production budget:
JULY AUGUST SEPTEMBER
Planned
Production in 1,200 1,309
1,180
units
The cost of platinum to be purchased to support August production is:
Enter your response without a $ sign or comma, and round to the nearest whole number.
You Answered
107,025
Correct Answer
97,208 margin of error +/- 0.5%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9b913de8-ad92-4515-a766-cc83599ad8f0%2Fa6d9bc7d-b815-4fbe-bc48-a95405feb5b6%2Fkqyo6j_processed.jpeg&w=3840&q=75)
Transcribed Image Text:ABC manufactures a product requiring 0.5 ounces of platinum per unit. The cost of platinum is
approximately $150 per ounce; the company maintains an ending platinum inventory equal to 10% of
the following month's production usage. The following data were taken from the most recent
quarterly production budget:
JULY AUGUST SEPTEMBER
Planned
Production in 1,200 1,309
1,180
units
The cost of platinum to be purchased to support August production is:
Enter your response without a $ sign or comma, and round to the nearest whole number.
You Answered
107,025
Correct Answer
97,208 margin of error +/- 0.5%
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