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Jlenok [28]
3 years ago
12

Direct materials inventories are kept in pounds for Cat Company, and the total pounds needed for production in the current perio

d 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.
Business
1 answer:
pychu [463]3 years ago
8 0

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

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