Question

8.A company requires 100 pounds of plastic to meet the production needs of a small toy. It currently has 10 pounds of plastic inventory. The desired ending inventory of plastic is 30 pounds. How many pounds of plastic should be budgeted for purchasing during the coming period?

Answer 1

120 pounds

Step-by-step explanation:

Data provided in the question:

Plastic required to meet the production needs of a small toy = 100 pounds

Current plastic inventory = 10 pounds

Desired ending inventory = 30 pounds

Now,

The plastic to be budgeted for purchasing

= Plastic required to meet the production needs - Current plastic inventory + Desired ending inventory

= 100 pounds - 10 pounds + 30 pounds

= 120 pounds