Question

If there were 70000 pounds of raw materials on hand on January 1, 100000 pounds are desired for inventory at January 31, and 250000 pounds are required for January production, how many pounds of raw materials should be purchased in January?

Answer 1

Answer:

280,000 pounds

Explanation:

The computation of the purchase of raw material is shown below:

= Ending inventory + production required - beginning inventory

= 100,000 pounds + 250,000 pounds - 70,000 pounds

= 280,000 pounds

We simply added the required production and deducted the beginning inventory to the ending inventory so that the correct pounds can be calculated