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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