Masterson Company's budgeted production calls for 56,000 units in April and 52,000 units in May of a key raw material that costs $1.85 per unit. Each month's ending raw materials inventory should equal 30% of the following month's budgeted materials. The April 1 inventory for this material is 16,800 unit. What is the budgeted materials needed in units for April?
A. 57,600 units.
B. 56,000 units.
C. 71,600 units.
D. 54,800 units.
E. 39,200 units.
Answer: D
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