Question

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) 71,300 ? 86,500 Budgeted raw materials purchases (in pounds) 199,977 171,100 165,300 Three 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 21% of the following month's production needs. The company is expected to have 44,919 pounds of raw materials on hand on January 1. Budgeted production for February should be: (Round your intermediate calculations to 2 decimal places.)

Answer 1

	Jan	Feb	March
Budgeted Production	71300	49200	86500
Raw material per unit	3	3	3
Raw material required for production	213900	147601	259500
Add: Desired Ending Inventory	30996	54495	-39705
Less: Beginning Inventory	44919	30996	54495
Budgeted Raw material purchases	199977	171100	165300
Hence, Budgeted Production in Feb = 49,200 units