Answer:
$40,970
Step-by-step explanation:
The computation of the total cost of the material K is given below;
Material needed for August sales:
= 14,000 × 3
= 42,000
Desired ending inventory:
= 14,500 × 3 × 20%
= 8,700
Beginning inventory:
= 2,500
Now
Purchases in August:
= (42,000 + 8,700 - 2,500) × $0.85
= $40,970