Slocan Company is preparing its materials budget for January.The budget calls for 5,900 finished units to be produced in January and 6,100 to be produced in February.

Each finished unit requires 2 litres of raw materials.The company has a policy of having raw materials in inventory at the end of each month equal to 60% of the next months expected materials needed for production.

Required:

[Answer format: No commas, no decimals]

A. (1 mark) Compute the number of litres of material needed to produce the 5,900 finished units in January.

Answer:Answer

litres

B. (2 marks) Compute the desired ending raw materials inventory (in litres) at January 31.