Answer: $99,000
Step-by-step explanation:
Given Data:
Finished products = 1 unit requires 3 feet of material
Raw material inventory = 2000 units + 10% for next month.
Cost of raw materials = $4.50/foot
Therefore:
Since Dustman manufacturing maintains an inventory of 2000 units + 10% for next month.
Total units needed for February would be
= 20,000 units + 10% * 20,000
= 20,000 + 2000
= 22,000 units
Value of raw materials for February
= 22000 units * $4.50
= $99,000