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Problem 4: Cowles Corporation Inc., makes and sells a single p Material K are needed to make one unit of Product R. Budgeted produc five months is as follows: roduct, Product R. Three yards of tion of Product R for the next 2oG August 13,000 units x 3 xO. September13,500 units October November December 14,500 units 13.600 units 12,900 units The company wants to maintain monthly ending inventories of Material K equal to30% ofthe ollowing month's production needs. On July 31, this requirement was not met because only 3,500 yards of Material K were on hand. The cost of Material K is $0.80 peryard. The company wants to prepare a Direct Materials Purchase Budget for the rest of the year. 2 3 Calculate the total cost of Material K to be purchased in August. Calculate the desired ending inventory of Material K for September. Calculate the total needs (i.e., production requirements plus desired ending inventory) of Material K for November