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: 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. 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 total cost of Material K to be purchased in August is $40,970

Explanation:

Direct Materials Budget

                                                            August             September

Production needs                             14,000 unit        14,500 unit

Raw materials in yards to make            3                           3

one unit

Total production requirements        42,000 unit      43,500 unit

Add ending inventory                       8700 units  

(43,500 * 20%)

Total needs                                       50,700 units

Lessl: Opening inventory                 2,500    

Total material requirement               48,200  

Cost of material per yard                  * 0.85    

Total cost of materials                      $40,970

u = 30

continuing your method

= +

subtract from both sides

= - thus

= -

= ⇒ u = 30

answer; ///(d); determining who competes most closely   with whom evaluating whether industry driving forces and competitive pressure favor some strategic groups and hurt others, and ascertaining whether the profit potential of different strategic groups varies due to the strengths and weaknesses in each groups respective market positions;