Coles Corporation, Incorporated 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: a. b. August September October C. d. 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. The total cost of Material K to be purchased in August is: 14,000 units 14,500 units 15,500 units 12,600 units 11,900 units $42,300 $33,840 $48,200 $40,970

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Coles Corporation, Incorporated 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:
a.
b.
August
September
October
C.
d.
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.
The total cost of Material K to be purchased in August is:
14,000 units
14,500 units
15,500 units
12,600 units
11,900 units
$42,300
$33,840
$48,200
$40,970
Transcribed Image Text:Coles Corporation, Incorporated 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: a. b. August September October C. d. 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. The total cost of Material K to be purchased in August is: 14,000 units 14,500 units 15,500 units 12,600 units 11,900 units $42,300 $33,840 $48,200 $40,970
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