Ask Question
2 March, 00:47

If there were 70,000 pounds of raw materials on hand on January 1, 140,000 pounds are desired for inventory at January 31, and 420,000 pounds are required for January production, how many pounds of raw materials should be purchased in January

+2
Answers (1)
  1. 2 March, 00:54
    0
    The 490,000 pounds of raw materials need to purchased in January

    Explanation:

    Computing the pounds of raw materials need to purchased in January as:

    Purchases required = Closing Inventory + Production requirements - Opening Inventory

    where the amounts are as follows:

    Closing inventory amounts to 140,000

    Production requirement amounts to 420,000

    Opening or beginning inventory amounts to 70,000

    So, putting the values above:

    Purchase required = 140,000 + 420,000 - 70,000

    Purchase required = 560,000 - 70,000

    Purchase required = 490,000 pounds
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “If there were 70,000 pounds of raw materials on hand on January 1, 140,000 pounds are desired for inventory at January 31, and 420,000 ...” 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