8. 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 $2.85 per liter. Each month's ending raw materials inventory should equal 35% of the following month's budgeted materials. The April 1 inventory for this material is 16,800 liters. What is the budgeted materials need in liters for April?

Question

Business

Nathaniel Owen

6 August, 16:37

8. 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 $2.85 per liter. Each month's ending raw materials inventory should equal 35% of the following month's budgeted materials. The April 1 inventory for this material is 16,800 liters. What is the budgeted materials need in liters for April?

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Vance Anderson · Answer 1

54,600

Explanation:

According to the scenario, computation of the given data are as follow:-

Particular Quantity of Raw Material (liters)

Required Raw Material 56,000

Add-Raw Material's ending stock (52,000 * 35%) 18,200

Less-Raw Material's opening stock (56,000 * 35%) 19,600

Budgeted material need for April 54,600

We simply applied the above format for determining the budgeted material needed for the month of April