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Question 1: Masterson Company's budgeted production calls for 69,000 liters in April and 65,000 liters in May of a key raw material that costs $1.75 per liter. 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 20,700 liters. What is the budgeted materials need in liters for April?
Option 1: 69,000 liters.
Option 2: 67,800 liters.
Option 3: 70,600 liters.
Option 4: 48,300 liters.
Option 5: 88,500 liters.
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