Cowles Corporation Inc

Multiple Choice

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: 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:

A) $47,650
B) $38,120
C) $30,350
D) $24,280