Answer:
271,500 pounds
Explanation:
Given:
Quarter FIRST SECOND THIRD FOURTH
Production in unit 48000 88000 98000 78000
Raw material per unit 3 3 3 3
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Thus,
Need for material = Production in unit × Raw material per unit
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Quarter FIRST SECOND THIRD FOURTH
Need for material in production 144,000 264,000 294,000 234,000
Desired ending inventory = 25% of next quarter's production needs for material
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ADD:
Desired ending inventory 66000 73500 58500
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Total need of material = Need for material in production + Desired ending inventory
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Quarter FIRST SECOND THIRD FOURTH
Total need of material = 210,000 337,500 352,500
Beginning inventory 38000 66000 73500
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Total purchase = Total need of material - Beginning inventory
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Quarter FIRST SECOND THIRD FOURTH
Total purchase = 172,000 271,500 279,000
Hence,
The answer is 271,500 pounds
