Ask Question
15 September, 18:40

Crane Company required production for June is 112000 units. To make one unit of finished product, three pounds of direct material Z are required. Actual beginning and desired ending inventories of direct material Z are 290000 and 310000 pounds, respectively. How many pounds of direct material Z must be purchased

+4
Answers (1)
  1. 15 September, 18:49
    0
    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
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Crane Company required production for June is 112000 units. To make one unit of finished product, three pounds of direct material Z are ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers