Figure 9-9. Yummy Jams Company produces a line of jams.Yummy's estimated production of jars of jam for the fourth quarter of the year is as follows:
Each jar requires half a pound of berries.Yummy prefers to buy the freshest berries,so its policy is to have just 3 percent of the following month's production needs in ending inventory.On October 1,the company had 1,125 pounds of berries in inventory.Yummy's pays $0.60 per pound of berries.It buys all berries on account and typically pays 40 percent of a month's purchases in that month,and the remaining 60 percent the following month.
Refer to Figure 9-9.What is the dollar cost of purchases for October?

Question

Figure 9-9. Yummy Jams Company produces a line of jams.Yummy's estimated production of jars of jam for the fourth quarter of the year is as follows:
 Each jar requires half a pound of berries.Yummy prefers to buy the freshest berries,so its policy is to have just 3 percent of the following month's production needs in ending inventory.On October 1,the company had 1,125 pounds of berries in inventory.Yummy's pays $0.60 per pound of berries.It buys all berries on account and typically pays 40 percent of a month's purchases in that month,and the remaining 60 percent the following month.
Refer to Figure 9-9.What is the dollar cost of purchases for October?

Quizplus · Accepted Answer

The Answer of Figure 9-9. Yummy Jams Company produces a line of jams.Yummy's estimated production of jars of jam for the fourth quarter of the year is as follows:
 Each jar requires half a pound of berries.Yummy prefers to buy the freshest berries,so its policy is to have just 3 percent of the following month's production needs in ending inventory.On October 1,the company had 1,125 pounds of berries in inventory.Yummy's pays $0.60 per pound of berries.It buys all berries on account and typically pays 40 percent of a month's purchases in that month,and the remaining 60 percent the following month.
Refer to Figure 9-9.What is the dollar cost of purchases for October?