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29 December, 19:50

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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  1. 29 December, 20:03
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    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
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