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