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 cost of materials purchases for April?

A) $106,560.
B) $101,380.
C) $103,600.
D) $72,520.
E) $132,460.

Correct Answer:

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