Marst Corporation's Budgeted Production in Units and Budgeted Raw Materials

Multiple Choice

Marst Corporation's budgeted production in units and budgeted raw materials purchases over the next three months are given below: Two pounds 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 30,000 pounds of raw materials on hand on January 1. Budgeted production for February should be:

A) 60,000 units
B) 54,000 units
C) 84,000 units
D) 108,000 units