Marst Corporation's budgeted production in units and budgeted raw materials purchases over the next three months are given below: Two pounds of raw materials are required to produce one unit of product. The company wants raw materials on hand at the end of each month equal to 30% of the following month's production needs. The company is expected to have 30,000 pounds of raw materials on hand on January 1. Budgeted production for February should be:
A)60,000 units
B)54,000 units
C)84,000 units
D)108,000 units

Question

Marst Corporation's budgeted production in units and budgeted raw materials purchases over the next three months are given below:  Two pounds of raw materials are required to produce one unit of product. The company wants raw materials on hand at the end of each month equal to 30% of the following month's production needs. The company is expected to have 30,000 pounds of raw materials on hand on January 1. Budgeted production for February should be:
A)60,000 units 
B)54,000 units 
C)84,000 units 
D)108,000 units

Quizplus · Accepted Answer

The Answer of Marst Corporation's budgeted production in units and budgeted raw materials purchases over the next three months are given below:  Two pounds of raw materials are required to produce one unit of product. The company wants raw materials on hand at the end of each month equal to 30% of the following month's production needs. The company is expected to have 30,000 pounds of raw materials on hand on January 1. Budgeted production for February should be:
A)60,000 units 
B)54,000 units 
C)84,000 units 
D)108,000 units

Marst Corporation's Budgeted Production in Units and Budgeted Raw Materials