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Dustman Manufacturing Corporation's Most Recent Production Budget Indicates the Following

Question 31

Multiple Choice

Dustman Manufacturing Corporation's most recent production budget indicates the following required production: Dustman Manufacturing Corporation's most recent production budget indicates the following required production: Each unit of finished product requires 3 feet of raw materials. The company maintains raw materials inventory equal to 2,000 feet plus 10% of the next month's expected production needs. The raw material used in Dustman Manufacturing Corporation's product costs $4.50 per foot. What is the value of raw material that Dustman Manufacturing should plan on purchasing for the month of February? A) $73,575 B) $74,250 C) $81,000 D) $80,325 Each unit of finished product requires 3 feet of raw materials. The company maintains raw materials inventory equal to 2,000 feet plus 10% of the next month's expected production needs. The raw material used in Dustman Manufacturing Corporation's product costs $4.50 per foot. What is the value of raw material that Dustman Manufacturing should plan on purchasing for the month of February?


A) $73,575
B) $74,250
C) $81,000
D) $80,325

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