Marple Company's Budgeted Production in Units and Budgeted Raw Materials

Marple Company's budgeted production in units and budgeted raw materials purchases over the next three months are given below:
Two kilograms of raw materials are required to produce one unit of product.The company wants raw materials on hand at the end of each month equal to 30% of the following month's production needs.The company is expected to have 36,000 kilograms of raw materials on hand on January 1.What should be the budgeted production for February?

A) 75,000 units.
B) 82,500 units.
C) 105,000 units.
D) 150,000 units.

Correct Answer:

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