Question: Hackett llc make and sells a product called Allene. One Allene requires 13.6 kg of the raw material Montana Matrix. Budgeted production of Allene for
Hackett llc make and sells a product called Allene. One Allene requires 13.6 kg of the raw material Montana Matrix. Budgeted production of Allene for the next five months is as follows: August 26,510 September 24,180 October 25,100 November 27,300 December 26,000 Hacket llc wants to maintain monthly ending inventories of Montana equal to 26% of the following month's production needs. On july 31, this requirement was not met since only 11,600 kg of Montana were on hand. The cost of Montana is $29 per kg. The company wants to prepare a Direct Materials Purchase Budget for the next 5 months. The total cost of Montana to be purchased in August is:
Ans: A $12,598,658
B$10,119,114
C $12,935,058
D $17,638,121
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