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Jlenok [28]
3 years ago
5

Masterson Company's budgeted production calls for 68,000 units in April and 64,000 units in May of a key raw material that costs

$1.70 per unit. Each month's ending raw materials inventory should equal 25% of the following month's budgeted materials. The April 1 inventory for this material is 17,000 unit. What is the budgeted materials needed in units for April?
Business
1 answer:
Finger [1]3 years ago
7 0

Answer:

The budgeted materials needed in units for April = 67000 litres

Explanation:

The budgeted  production for April = 68000 units

The budgeted  production for may = 64000 units

The cost of raw material per unit = $1.70 per unit

It is given that at the end of each month the inventory should be = 25%

The April 1 inventory = 17000 units

Now calculate the material required for April production:= [ Materials needed + ending inventory requirements - beginning inventory available ]= [ 68000 + (64000 × 25%) – 17000 ] = 67000 Litres

Therefore, the budgeted materials needed in units for April = 67000 litres

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Consider two of the income security programs in the United States: Temporary Assistance for Needy Families (TANF) and the Earned
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