Coles Corporation, Inc. makes and sells a single product, Product R. Three yards of Material K are needed to make one unit of Product R. Budgeted production of Product R for the next five months is as follows: August September October November December The company wants to maintain monthly ending inventories of Material K equal to 20% of the following month's production needs. On July 31, this requirement was not met since only 2,500 yards of Material K were on hand. The cost of Material K is $0.85 per yard. The company wants to prepare a Direct Materials Purchase Budget for the rest of the year. 14,000 units 14,500 units 15,500 units 12,600 units 11,900 units The desired ending inventory of Material K for September is: 08.700 yards O 8,400 yards 07.560 yards 9.300 yards
Coles Corporation, Inc. makes and sells a single product, Product R. Three yards of Material K are needed to make one unit of Product R. Budgeted production of Product R for the next five months is as follows: August September October November December The company wants to maintain monthly ending inventories of Material K equal to 20% of the following month's production needs. On July 31, this requirement was not met since only 2,500 yards of Material K were on hand. The cost of Material K is $0.85 per yard. The company wants to prepare a Direct Materials Purchase Budget for the rest of the year. 14,000 units 14,500 units 15,500 units 12,600 units 11,900 units The desired ending inventory of Material K for September is: 08.700 yards O 8,400 yards 07.560 yards 9.300 yards
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Coles Corporation, Inc. makes and sells a single product, Product R. Three yards of Material K
are needed to make one unit of Product R. Budgeted production of Product R for the next five
months is as follows:
August
September
October
November
December
14,000 units
14,500 units
15,500 units
12,600 units
11,900 units
The company wants to maintain monthly ending inventories of Material K equal to 20% of the
following month's production needs. On July 31, this requirement was not met since only 2,500
yards of Material K were on hand. The cost of Material K is $0.85 per yard. The company wants
to prepare a Direct Materials Purchase Budget for the rest of the year.
08.700 yards
O 8,400 yards
07.560 yards
9.300 yards
The desired ending inventory of Material K for September is:
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