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Aloiza [94]
3 years ago
6

7 pounds of raw material are required to make 1 finished unit. The company desires an ending raw materials inventory for each mo

nth equal to 29% of the following months production (in units of raw material) . How many pounds of raw material should be purchased in May?
Business
1 answer:
timurjin [86]3 years ago
7 0

Answer:

Instructions are below.

Explanation:

We weren't provided with enough information to answer the request. <u>But, I will give an example and formulas to guide an answer.</u>

<u>For example:</u>

Production in units:

May=20,000

June= 22,000

Beginning inventory of direct materials= 8,000

<u>To calculate the purchase for May, we need to use the following formula:</u>

Purchases= production + desired ending inventory - beginning inventory

Purchases= 20,000*7 + (22,000*7)*0.29 - 8,000

Purchases= 176,660 pounds

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