Budgeted production for specific month


Marple Company'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 36,000 pounds of raw materials on hand on January 1. Budgeted production for February should be:

A. 105,000 units

B. 82,500 units

C. 150,000 units

D. 75,000 units

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Budgeted production for specific month
Reference No:- TGS067721

Expected delivery within 24 Hours