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

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

Correct Answer:

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