Marst Corporation's budgeted production in units and budgeted raw materials purchases over the next three months are given below: 17 Budgeted production (in units) Budgeted raw materials purchases (in pounds) January February March 70,200 ? 81,000 221,160 154,600 159,800 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 30% of the following month's production needs. The company is expected to have 84,240 pounds of raw materials on hand on January 1. Budgeted production for February should be: Multiple Choice 81,000 units 0 20500 unit 20,500 units 57,200 units 81,600 units Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: 18 Sales are budgeted at $251,000 for November, $291,000 for December, and $218,000 for January . Collections are expected to be 60% in the month of sale and 40% in the month following the sale. The cost of goods sold is 75% of sales. The company desires to have an ending merchandise inventory at the end of each month equal to 90% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase Other monthly expenses to be paid in cash are $20,000. Monthly depreciation is $25,000. Ignore taxes. $ Balance Sheet October 31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $624,000 accumulated depreciation Total assets 26,000 81,000 169,425 946,000 $1,222, 425 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 247,000 748,000 227,425 $1,222,425 Retained earnings at the end of December would be: Multiple Choice 0 $251,925 O $272,325 O $227,425 O $272,925