Answer:
The answer is 43,712
Explanation:
We have:
Beginning finished good of August: 20% of budgeted sales in August = 20% x 11,300 = 2,260 units
Ending finished good of August : 20% of budgeted units required in September = 20% x 10,400 = 2,080 units
=> Units of finished goods to be produced in August = Unit sold - Beginning Inventory + Ending Inventory = 11,300 - 2,260 + 2,080 = 11,120 => Raw material for finished good in August = 4 * 11,120 = 44,480
Beginning Raw material for August = Raw material needed for August x 30% = 44,480 * 30% = 13,344
Ending Raw Material for August = Raw material needed for September x 30% = 41,920 x 30% = 12,576
=> Purchases of raw material in August = Raw material for finished good in August - Beginning Raw material for August + Ending Raw Material for August) = 44,480 - 13,344 + 12,576 = 43,712 pounds
