Coles Corporation, Inc

question 85

Multiple Choice

Coles Corporation, 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:

• A) $40,970
• B) $48,200
• C) $33,840
• D) $42,300

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Definitions:

Sporting Goods Categories

Classifications of products related to sports and physical activities, encompassing equipment, apparel, and accessories.

Limited-Line Stores

Retail outlets that specialize in a limited number of product lines or categories, offering deep assortments within those lines.

Tremendous Depth

An expression that describes something with great complexity, detail, or intensity.

Limited Service

A type of business or service provision that offers a narrow or restricted range of services, often at a lower cost compared to full-service counterparts.