Answer:
Purchases= 1,595,000 pounds
Explanation:
<u>Giving the following information: </u>
Production= 620,000 units
Beginning raw materials inventory= 730,000 pounds
Desired ending inventory= 25% of the three months requirement.
Each unit requires 3 pounds of raw material.
<u>To calculate the purchases required, we need to use the following formula:</u>
Purchases= production + desired ending inventory - beginning inventory
Purchases= (620,000*3) + (620,000*3)*0.25 - 730,000
Purchases= 1,595,000 pounds
