# Monthly Cost Calculation for Raw Material

## What data is used to calculate the monthly cost of raw material?

Cell A2 shows the fixed cost of the raw material and Column D lists the number of units purchased each month. What formula can be used to calculate the monthly cost of raw material?

## Monthly cost calculation formula:

Candace can use the formula =A2*D2 to calculate monthly costs, by multiplying the fixed cost per unit by the number of units purchased each month. This formula can then be copied down to calculate this for every month.

## Explanation:

In order to calculate the monthly cost of raw materials, Candace can use a formula that links the fixed cost in cell A2 and the number of units purchased each month in Column D. By multiplying the fixed cost by the quantity of raw materials purchased each month, the total monthly cost can be determined.

By consistently applying the formula =A2*D2 across all rows, Candace can calculate the monthly cost for each month. This ensures accurate and efficient computation of raw material expenses.