Hardin, Inc, has budgeted sales in units for the next five months as follows: June 6,800 units Junly 5,600 units August 6,000 units September 7,000 units October 6,900 units Past experience has shown that the ending inventory for each month should be equal to 15% of the next month's sales in units. The inventory on May 31 contained 1,020 units. The company needs to prepare a production budget for the next five months. The beginning inventory for September should be: The total number of units produced in July should be: /////////////////

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: 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: . The desired ending inventory of Material K for the month of September is: The total needs (i.e., production requirements plus desired ending inventory) of Material K for the month of November are: