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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) | 70,000 | ? | 80,000 | ||||||
Budgeted raw materials purchases (in pounds) | 142,400 | 151,600 | 158,800 | ||||||
Two 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 42,000 pounds of raw materials on hand on January 1. Budgeted production for February should be:
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