Answer:
497,000 units
Explanation:
Total production:
= Budgeted production + Desired ending inventory
= (100,000 × 5) + [(9,000 × 5) + 42,000]
= 500,000 + (45,000 + 42,000)
= 500,000 + 87,000
= 587,000
Units to be purchased:
= Total production - Beginning inventory
= 587,000 - [(10,000 × 5) + 40,000]
= 587,000 - (50,000 + 40,000)
= 587,000 - 90,000
= 497,000
Therefore, the raw materials should the company plan to purchase during March is 497,000 units.
