Question

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

Answer 1

The complete Question can be found attached

The November production need is 37,380 Yards. Which also costs $31,773

Please view the attached document for detailed workings