Answer:
Purchases= 356,000 pounds
Explanation:
Giving the following information:
Production= 112,000 units.
Standard quantity= 3 pounds of direct material Z
Beginning inventory= 290,000 pounds
Desired ending inventory= 310,000 pounds
To calculate the purchase required for direct material, we need to use the following formula:
Purchases= production + desired ending inventory - beginning inventory
Purchases= 112,000*3 + 310,000 - 290,000
Purchases= 356,000 pounds
