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QUESTION 4 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 September October November December Units 14,000 14,500 15,500 12,600 11,900 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: $40,970 $48,200 $33,840 $42,300