Question: Walker, Inc.makes and sells a single product, widgets. Three pounds of wackel are needed to make one widget. Budgeted production of widgets for the next

Walker, Inc.makes and sells a single product, widgets. Three pounds of wackel are needed to make one widget. Budgeted production of widgets for the next few months is as follows:
September 14,500 units
October 15,500 units
The company wants to maintain monthly ending inventories of wackel equal to 20% of the following month's production needs. On August 31, 2,500 pounds of wackel were on hand. The cost of wackel is $.80 per pound. How much is the cost of wackel to be purchased in September?

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