“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 units September 14,500 units October 15,500 units November 12,600 units December 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, 2,500 yards of Material K were on hand. The cost of Material K is $.85 per yard. The company wants to prepare a Direct Materials Purchase Budget for the fourth quarter. 89. The total needs of Material K for the month of November are: a. 37,800 yards b. 44,940 yards c. 37,380 yards. d. 45,360 yards.”,”2Total needs of material K for the month of November: October November DecemberBudgeted production 15,500 12,600 11,900Per unit needs of K 3 3 3 Production Needs 46,500 37,800 35,700+ Desired Ending Inv. 7,560 7,140 — Beginning Inv. 7,560Total Needs of K for November 37
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