Business, 18.03.2020 01:50 rachelsweeney10
Cowles 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 13,000 units
September 13,500 units
October 14,500 units
November 13,600 units
December 12,900 units
The company wants to maintain monthly ending inventories of Material K equal to 30% of the following month's production needs. On July 31, this requirement was not met because only 3,500 yards of Material K were on hand. The cost of Material K is $0.80 per yard. The company wants to prepare a Direct Materials Purchase Budget for the rest of the year.
Required:
1. The total needs (i. e., production requirements plus desired ending inventory) of Material K for November are :
O 40,800
O 44,940
O 37,380
O 52,410
Answers: 3
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Cowles Corporation, Inc. makes and sells a single product, Product R. Three yards of Material K are...
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