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Cu 21 Greenoil Ltd purchases used vegetable oil from the food processing industry and then converts it, without any loss of volume, for use
Cu 21 Greenoil Ltd purchases used vegetable oil from the food processing industry and then converts it, without any loss of volume, for use as fuel for motor cars. Budgeted sales of the fuel are: Period 1 Period 2 Period 3 Period 4 20000 litres 30000 litres 40000 litres 45000 litres Greenoil has a target period end finished goods inventory of 50% of the fuel expected to be sold in the following period, and a target period end raw material inventory of 30% of the oil needed for the following period's production. Calculate the budgeted purchases of used vegetable oil for Period 2 A. 38000 litres B. 32500 litres C. 24250 litres D. 37250 litres
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