Emerald Company budgeted the following production in units for the first quarter of the year:
Each unit requires 3 kg of raw material. Emerald's policy is to have 20% of the following month's production needs for materials in inventory. On January 1, the raw materials inventory equalled 11,000 kg. $$\begin{array} { l l }
\text { January } & 30,000 \
\text { February } & 20,000 \
\text { March } & 40,000
\end{array}$$
-Refer to the Figure.What was the ending inventory for January in kilograms?

Question

Emerald Company budgeted the following production in units for the first quarter of the year:
Each unit requires 3 kg of raw material. Emerald's policy is to have 20% of the following month's production needs for materials in inventory. On January 1, the raw materials inventory equalled 11,000 kg. $$\begin{array} { l l } 
\text { January } & 30,000 \
\text { February } & 20,000 \
\text { March } & 40,000
\end{array}$$
-Refer to the Figure.What was the ending inventory for January in kilograms?

Quizplus · Accepted Answer

The ending inventory for January in kilograms is calculated based on 20% of February's production needs. February requires 20,000 units, each needing 3 kg of raw material, totaling 60,000 kg. 20% of 60,000 kg is 12,000 kg, which is the ending inventory for January.

Emerald Company Budgeted the Following Production in Units for the First