Question

Marst Corporations budgeted production in units and budgeted raw materials purchases over the next three months are given be

Dilly Farm Supply is located in a small town in the rural west. Data regarding the stores operations follow: 18 • Sales are

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Answer #1

OPTION: 20500 units

EXPLANATION:

budgeted production for February = (ending inventory of January/30%)/4

= (24600/30%)4

= 82000/4

= 20500 units

where,

Ending inventory of January = beginning inventory + purchases - consumed in production

= 84240 + 221160 - (70200 x 4)

= 24600

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