Answer:
Raw materials to be Purchased 426,000
Explanation:
Raw materials production needs 396,000 (A)
Desired Ending Inventory 330,000 (B)
Total needs 726,000 (C) (A+B)
Beginning Inventory (300,000) (D)
Raw materials to be Purchased 426,000
(A)
Required production 132,000
each units required 3 pounds of raw materials per unit
so we multiply to get how many are required for production
(B) the desired inventory are additional units we need to purchase
(D) the beginning inventory are units we already have on inventory, decreasing our purchase needs.
