Answer:
78,520 pounds
Explanation:
January:
Total required units = Expected unit sales + Desired ending finished goods units
= 35,000 + (28,000 × 10%)
= 35,000 + 2,800
= 37,800
Required production units = Total required units - Beginning finished goods units
= 37,800 - 0
= 37,800
February:
Total required units = Expected unit sales + Desired ending finished goods units
= 28,000 + (40,000 × 10%)
= 28,000 + 4,000
= 32,000
Required production units = Total required units - Beginning finished goods units
= 32,000 - 2,800
= 29,200
Therefore,
Total pounds needed for production:
= Units to be produced × Direct material per unit
= 37,800 × 2
= 75,600
Total materials required:
= Total pounds needed for production + Desired ending direct materials (in pounds)
= 75,600 + (29,200 × 2 × 5%)
= 75,600 + 2,920
= 78,520
Direct material purchases in January:
= Total materials required - Beginning direct materials
= 78,520 - 0
= 78,520 pounds
