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Use the following to answer questions 9-11: Coles Company, Inc. makes and sells a single product, Product R. Three yards of Material K are needed
Use the following to answer questions 9-11: 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 .... 14,000 units September ............ 14,500 units October ... 15,500 units November 12,600 units December ............ 11,900 units The company wants to maintain monthly ending inventories of Material K equal to 20% of the following month's production needs. The cost of Material K is $.85 per yard. The company wants to prepare a Direct Materials Purchase Budget for the rest of the year. The company pays 50% of the purchase in cash during the month of purchase and the remaining balance the following month. 9. The total cost of Material K to be purchased in August is: 10. The desired ending inventory of Material K for the month of September is: 11. What is the amount of cash payment for purchases during the month of September
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