Question
Cowles Corporation makes a sells a single product. Product R. Three yards of Material K is needed to make one unit of Product R. Budget
Cowles Corporation makes a sells a single product. Product R. Three yards of Material K is needed to make one unit of Product R. Budget production R for the next five months is as follow.
August: 13, 000 units
Sept. 13,500 units
Oct. 14,500 units
Nov. 13,600 units
Dece. 12,900 units.
The company wants to maintain monthly end inventory of material K equal to 30% of the following month's production needs. On July 31, the requirement was not met because only 3,500 yards of Material K were on hand. The cost of Material K is .80 per yards The company wants to prepare a Direct Material purchases budget for the rest of the year.
question 1: The total cost of Material to be purchased in August.
question: 2. The desired ending inventory of Material K for September is.
question 3. The total needs (i.e. production requirements plus desired ending inventory of Mat Material K for November are
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