TB MC Qu. 09-55 Marst Corporation's budgeted production...

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) 58,000 ? 80,000 Budgeted raw materials purchases (in pounds) 125,600 151,600 207,600

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 29,000 pounds of raw materials on hand on January 1. Budgeted production for February should be:

rev: 10_27_2016_QC_CS-67319

74,000 units

48,000 units

103,600 units

96,000 units