Masterson Company's Budgeted Production Calls for 56,000 Liters in April

Masterson Company's budgeted production calls for 56,000 liters in April and 52,000 liters in May of a key raw material that costs $1.85 per liter.Each month's ending raw materials inventory should equal 30% of the following month's budgeted materials.The January 1 inventory for this material is 16,800 liters.What is the budgeted materials need in liters for April?

A) 71,600 liters.
B) 39,200 liters.
C) 57,600 liters.
D) 56,000 liters.
E) 54,800 liters.

Correct Answer:

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