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Marst Corporation's budgeted production in units and budgeted raw materials purchases over the next three months are given below: January February March Budgeted production (in
Marst Corporation's budgeted production in units and budgeted raw materials purchases over the next three months are given below:
January | February | March | |
---|---|---|---|
Budgeted production (in units) | 71,700 | ? | 88,500 |
Budgeted raw materials purchases (in pounds) | 244,633 | 177,100 | 167,300 |
Four 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 25% of the following month's production needs. The company is expected to have 71,700 pounds of raw materials on hand on January 1. Budgeted production for February should be:
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