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Zoltek Corporation budgets production of 500 units in January and 350 units in February. Each finished unit requires six pounds of material Z, which costs $4 per pound. What should be the ending inventory of material Z for February? a) 140 pounds b) 210 pounds c) 90 pounds d) 80 pounds

User Cnsvnc
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Final answer:

The ending inventory of material Z for February is 2100 pounds. Option b is correct.

Step-by-step explanation:

To calculate the ending inventory of material Z for February, we need to consider the material requirements for both January and February and then subtract the actual usage from the total purchases.

Let's calculate the total material Z required for both months:

January:

500 units * 6 pounds/unit = 3,000 pounds

February:

350 units * 6 pounds/unit = 2,100 pounds

Total material Z required = 3,000 pounds (January) + 2,100 pounds (February)

= 5,100 pounds

Now, let's calculate the total cost of material Z purchases:

5,100 pounds * $4/pound = $20,400

Assuming that the total material Z purchases are equal to the total material Z requirements, and there are no beginning inventory or additional considerations, we can now calculate the ending inventory:

Total material Z purchases - Actual material Z usage = Ending inventory

$20,400 - (3,000 pounds * $4/pound) = $20,400 - $12,000 = $8,400

Now, we need to convert the remaining cost into pounds using the given cost per pound:

$8,400 / $4/pound = 2,100 pounds

Therefore, the ending inventory of material Z for February is 2,100 pounds. Option b is correct.

Complete question:

Zoltek Corporation budgets production of 500 units in January and 350 units in February. Each finished unit requires six pounds of material Z, which costs $4 per pound. What should be the ending inventory of material Z for February? a) 140 pounds b) 2100 pounds c) 90 pounds d) 80 pounds

User Keith OYS
by
8.4k points

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