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Mathematics, 12.11.2020 20:20 throwdown31
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:
August14,000units
September14,500units
October15,500units
November12,600units
December11,900units
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 desired ending inventory of Material K for September is:
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Coles Corporation, Inc. makes and sells a single product, Product R. Three yards of Material K are n...
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