A sporting goods manufacturer budgets production of 43,000 pairs of ski boots in the first quarter and 34,000 pairs in the second quarter of the upcoming year. Each pair of boots requires 2 kilograms (kg) of a key raw material. The company aims to end each quarter with ending raw materials inventory equal to 25% of the following quarter's requirements.

How much raw material should the company plan for?

A. 81,500 kg
B. 86,000 kg
C. 103,000 kg
D. 124,500 kg

The required ending raw material inventory for each quarter can be calculated by considering the production requirements and the desired inventory level. Let's break down the problem:

First quarter:

Production of ski boots = 43,000 pairs

Raw material requirement per pair = 2 kg

Total raw material requirement = 43,000 pairs * 2 kg/pair = 86,000 kg

Second quarter:

Production of ski boots = 34,000 pairs

Raw material requirement per pair = 2 kg

Total raw material requirement = 34,000 pairs * 2 kg/pair = 68,000 kg

The company aims to end each quarter with an inventory equal to 25% of the following quarter's requirement. Therefore, we need to calculate 25% of the raw material requirement for the second quarter:

25% of 68,000 kg = 0.25 * 68,000 kg = 17,000 kg

Hence, the company should aim to end the first quarter with an ending raw material inventory of 17,000 kg.

To summarize:

First quarter ending raw material inventory = 17,000 kg

Know more about Manufacturer here:

https://brainly.com/question/33621434

#SPJ11