Question

If there were 50000 pounds of raw materials on hand on January 1, 140000 pounds are desired for inventory at January 31, and 530000 pounds are required for January production, how many pounds of raw materials should be purchased in January?

Answer 1

Answer:

620,000 pounds

Explanation:

The computation of the number of pounds required raw material purchased in Jan is shown below:

Pounds of raw materials purchased is

= Pounds of material required for production + Desired Ending Inventory - Beginning Inventory

= 530,000 pounds + 140,000 pounds - 50,000 pounds

= 620,000 pounds

Hence, the number of pounds to be purchased is 620,000 pounds