Northwest manufactures a product requiring 0.5 ounces of platinum per unit. The cost of platinum is approximately $360 per ounce, the company maintains an ending platinum inventory equal to 10% of the...

Extracted text: Northwest manufactures a product requiring 0.5 ounces of platinum per unit. The cost of platinum is approximately $360 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 August September 980 July Planned production in units 1,000 1,100 The cost of platinum to be purchased to support August production is: $195,840. 1,1 O $198,000. O $200,160.