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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.

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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: August September October November December 14,000 units 14,500 units 15,500 units 12,600 units 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. this requirement was not met since only 2,500 yards of Material K were on hand. The cost of Material Kis $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: 8.700 yards 8,400 yards 7.560 yards 9.300 yards

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