ZuoTi.Pro
Question

Cowles Corporation Inc., makes and sells a single product, Product R. Three yards of Material K...

Cowles 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 13,000 units
September 13,500 units
October 14,500 units
November 13,600 units
December 12,900 units



The company wants to maintain monthly ending inventories of Material K equal to 30% of the following 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 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:

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1
Particulars August
Production unit 13000
Material for 1 unit 3
Total material required (yard) 39000
Add: Ending inventory (13500*3*30%) 12150
Less: Beginning inventory 3500
Total material required to purchase(yard) 47650
Cost per yard $0.80
Total cost of material K to be purchased $38,120
0 0
Add a comment
Know the answer?
Add Answer to:
Cowles Corporation Inc., makes and sells a single product, Product R. Three yards of Material K...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Caspion Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 8.5 kilograms of...

    Caspion Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 8.5 kilograms of the raw material Jurislon. Budgeted production of Miniwarps for the next five months is as follows: August 24,100 units September 22,800 units October 24,200 units November 25,400 units December 25,100 units The company wants to maintain monthly ending inventories of Jurislon equal to 25% of the following month's production needs. On July 31, this requirement was not met since only 12,300 kilograms of Jurislon...

  • Caspion Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 2.5 kilograms of...

    Caspion Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 2.5 kilograms of the raw material Jurislon. Budgeted production of Miniwarps for the next five months is as follows: August 23,500 units September 22,200 units October 23,600 units November 24,800 units December 24,500 units The company wants to maintain monthly ending inventories of Jurislon equal to 25% of the following month's production needs. On July 31, this requirement was not met since only 11,700 kilograms of Jurislon...

  • Caspion Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 8,5 kilograms of...

    Caspion Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 8,5 kilograms of the raw material Jurislon, Budgeted production of Miniwarps for the next five months is as follows: August September October November December 23,200 units 21,900 units 23,300 units 24,500 units 24,200 units The company wants to maintain monthly ending inventories of Jurision equal to 20% of the following month's production needs. On July 31, this requirement was not met since only 11,400 kilograms of Jurision...

  • Caspion Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 10.5 kilograms of...

    Caspion Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 10.5 kilograms of the raw material Jurislon. Budgeted production of Miniwarps for the next five months is as follows: August 23,400 units September 22,100 units October 23,500 units November 24,700 units December 24,400 units The company wants to maintain monthly ending inventories of Jurislon equal to 20% of the following month's production needs. On July 31, this requirement was not met since only 11,600 kilograms of Jurislon...

  • TB MC Qu. 8-176 Caspion Corporation makes and sells ... Caspion Corporation makes and sells a...

    TB MC Qu. 8-176 Caspion Corporation makes and sells ... Caspion Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 75 kilograms of the raw material Jurision. Budgeted production of Miniwarps for the next five months is as follows: August September October November December 23,100 units 21, 800 units 23,200 units 24,400 units 24, 100 units The company wants to maintain monthly ending inventories of Jurislon equal to 25% of the following month's production needs. On July...

  • Orr Company makes and sells a single product call ed a Bik. It takes four yards...

    Orr Company makes and sells a single product call ed a Bik. It takes four yards of Material A to make one Bik. Budget ed production of Biks for the next three months is as follows: February March April Budgeted Biks to be produced 21,000 units 26,000 units 33,000 units The company wants to maintain monthly ending inve ntories of Material A equal to 29% of the next month's production needs • Material A costs $1.75 per yard. The company...

  • Orr Company makes and sells a single product. The company is in the process of preparing...

    Orr Company makes and sells a single product. The company is in the process of preparing a direct materials purchases budget and has provided the following information: 1. It takes three yards of direct materials to produce one unit of this product. 2. Direct materials cost $1.20 per yard to purchase. 3. 15,600 units are budgeted to be produced in May. 4. The budgeted direct materials inventory balance at June 30 is $12,870. 5. Orr Company has budgeted the total...

  • Jordan Company makes and sells a single product. It takes five pounds of direct materials to...

    Jordan Company makes and sells a single product. It takes five pounds of direct materials to produce one unit of this product. The budgeted units to be produced for the next four months is given below: September October November December Budgeted Units to be Produced 31,900 units 22,400 units 26,100 units 34,600 units Jordan Company wants to maintain monthly ending inventories of direct materials that are equal to 24% of the following month's production needs. The cost of direct materials...

  • Jordan Company makes and sells a single product. It takes five pounds of direct materials to...

    Jordan Company makes and sells a single product. It takes five pounds of direct materials to produce one unit of this product. The budgeted units to be produced for the next four months is given below: September October November December Budgeted Units to be Produced 31,900 units 22,400 units 26,100 units 34,600 units Jordan Company wants to maintain monthly ending inventories of direct materials that are equal to 24% of the following month's production needs. The cost of direct materials...

  • Jordan Company makes and sells a single product. It takes five pounds of direct materials to...

    Jordan Company makes and sells a single product. It takes five pounds of direct materials to produce one unit of this product. The budgeted units to be produced for the next four months is given below: Budgeted Units to be Produced September 31,900 units October 22,400 units November 26,100 units December 34,600 units Jordan Company wants to maintain monthly ending inventories of direct materials that are equal to 24% of the following month's production needs. The cost of direct materials...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT