Mathematics · Production Budgeting & Applied Arithmetic
A company manufactures two products, X and Y, from the same direct material. An equal number of each product will be produced this period. Each unit of X requires 2 kg of material and each unit of Y requires 3 kg of material. The company always holds closing inventory of raw material sufficient for 40% of the next period's production. The budgeted closing raw material inventory for the previous period is 900 kg. What is the budgeted production of X for the current period?
- 11,125 units
- 2900 units
- 3450 units✓
- 4225 units
Correct answer
450 units
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