Answer:
Purchases= 137,000 pounds
Explanation:
Giving the following information:
Production= 20,000 pairs of skis.
Required material per unit= 7 pounds
Beginning inventory= 21,000 pounds
Desired ending inventory= 18,000 pounds.
To calculate the direct material purchase, we need to use the following formula:
Purchases= production + desired ending inventory - beginning inventory
Production= 20,000*7= 140,000 pounds
Purchases= 140,000 + 18,000 - 21,000
Purchases= 137,000 pounds
