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

A) 40,800 yards
B) 44,940 yards
C) 37,380 yards
D) 52,410 yards