Next months budgeted sales for TEMP is 18,000 units. Each unit of product TEMP uses 6 kilograms of raw materials. The production and inventory budgets for June 2021 are as follows:

Opening Inventory

Planned Ending Inventory

Raw materials

21,000 kgs.

24,400 kgs.

Finished goods

15,000 units

11,400 units

During the production process, it is usually found that 10% of production units are scrapped as defective and this loss occurs after the raw materials have been placed in process.

What will the raw material used be in June?

a. 98,440 kgs.

b. 96,000 kgs.

c. 89,800 kgs.

d. 99,400 kgs.