The cost of the direct material that should be purchased in August is: * Sample format: 111,111 NUBD Co. sells bird cages. The company has prepared the following sales forecast for the third quarter...

4

Extracted text: The cost of the direct material that should be purchased in August is: * Sample format: 111,111 NUBD Co. sells bird cages. The company has prepared the following sales forecast for the third quarter of 2021: July August September | 5,000 units | 6,000 units 10,000 units Inventory of finished goods in June 30, 2021 is budgeted at 1,000 units. Management would like the desired quantity of finished goods inventory at the end of each month to equal 20% of next month's budgeted sales. October's projected sales are 12,000 units. Each completed unit of finished product requires 3 square feet of cedar at a cost of P15 per square foot. The company has determined that it needs 10% of next month's raw material needs on hand at the end of each month.