Question
Marple Company's budgeted production in units and budgeted raw materials purchases over the next three months are given below: Budgeted Production (in Units)/Budgeted Raw Materials
Marple Company's budgeted production in units and budgeted raw materials purchases over the next three months are given below:
Budgeted Production (in Units)/Budgeted Raw Materials Purchases (in Kilograms)
January: 50,000/110,000
February: ?/165,000
Two kilograms 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 25% of the following month's production needs. The company is expected to have 30,000 kilograms of raw materials on hand on January 1. What should be the budgeted production for February?
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