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Business, 12.11.2019 03:31 sarahsompayrac
Coles company, 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 14,000 unitsseptember 14,500 unitsoctober 15,500 unitsnovember 12,600 unitsdecember 11,900 unitsthe 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 wasn't met because 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 isa. $33,840.b. $48,200.c. $42,300.d. $40,970.
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