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 42,000 pounds of raw materials on hand on January 1. Budgeted production for February should be:
A) 103,400 units
B) 80,600 units
C) 80,000 units
D) 74,000 units
Correct Answer:
Verified
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