Coles Corporation, Incorporated Makes and Sells a Single Product, Product

question 84

Multiple Choice

Coles Corporation, Incorporated 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 needs (i.e., production requirements plus desired ending inventory) of Material K for November are:

• A) 37,800 yards
• B) 44,940 yards
• C) 37,380 yards
• D) 45,360 yards

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Definitions:

New Learning

The acquisition of knowledge or skills in areas that are novel to the learner, often involving updated methodologies or technologies.

Action Research

A participatory process involving researchers and participants working together to understand and change practices.

Stakeholders

Individuals or groups with an interest or concern in an organization's activities and outcomes.

Chaos Theory

Complex systems are based on some form of order but can behave in unpredictable ways. The unpredictability of these systems results from the many interactions of the system variables and the consequences of differences in the initial states of those variables.