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2017 Radio- Now 4 x Help Save&Exit; Marst Corporation\'s budgeted production In

ID: 2552682 • Letter: 2

Question

2017 Radio- Now 4 x Help Save&Exit; Marst Corporation's budgeted production In units and budgeted row materials purchases over the nest three months are given below Budgeted production (in unita) Budgeted rav materials purchasen (in pounds) 198,321 166,600 163,800 71,000 85,000 Three pounds of raw materials are required to produce one to27% of the following month's production needs. The unit of product. The company wants row materials on hand at the end of each month equal company ls expected to have 44,730 pounds of row materials on hand on January t Budgeted production for February should be Multiple Choice

Explanation / Answer

Computation of Budgeted Production ( in Unit) for February Month Opening Stock of Ra Material 44730 Raw Material Purchase 198321 Total Raw Material Available 243051 Less: Raw Material Used in production -213000 (71000*3 Unit) Closing Stock of Raw Material 30051 Closing Stock of Raw Material 21% of Following Month Production Need Raw Material for following Month production 143100 (30051/21%) Unit in Production 47700