The following production budget for the four quarters of
2019:
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Units
3,000
4,000
5,000
8,000
Each units requires 4 kg of raw materials costing $6 per
kilogram. On December 31, 2018, the ending inventory of raw
materials was 3,000 kg. Management wants to have a raw materials
inventory at the beginning of each quarter equal to 25% of the
current quarter's production requirements in units. The production
budget for the first quarter...