Each jar requires half a pound of berries. Yummy prefers to buy the freshest berries, so its policy is to have just 3% 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% of a month's purchases in that month, and the remaining 60% the following month.
-Refer to Figure 9-9. How much cash is paid in November for berry purchases (rounded to the nearest dollar) ?
A) $25,258
B) $21,088
C) $28,900
D) $19,963
E) $32,212
Correct Answer:
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