Answer:
Purchases= 408,000 pounds
Explanation:
Giving the following information:
Production:
2nd Q= 99,000 units
3rd= 109,000 units
Four pounds of material A are required for each unit produced.
Desired ending inventory= 30% of the next quarter's production
<u>To calculate the purchases for the second quarter, we need to use the following formula:</u>
Purchases= production + desired ending inventory - beginning inventory
Purchases= (99,000*4) + (109,000*4)*0.3 - (99,000*4)*0.3
Purchases= 396,000 + 130,800 - 118,800
Purchases= 408,000 pounds
