Question

Direct materials inventories are kept in pounds for Cat Company, and the total pounds needed for production in the current period is 14,000. If the beginning inventory is 2,000 pounds and the desired ending inventory is 2,500 pounds, how many total pounds should be purchased.

Answer 1

Answer:

Purchase= 14,500 pounds

Explanation:

Giving the following information:

the total pounds needed for production in the current period is 14,000. Beginning inventory= 2,000 pounds

Desired ending inventory= 2,500 pounds

To calculate the direct material purchase, we need to use the following formula:

Purchase= direct material for the period + desired ending inventory - beginning inventory

Purchase= 14,000 + 2,500 - 2,000

Purchase= 14,500 pounds