Question

Boulware company's budgeted production calls for 6,600 units in October and 9,600 units in November. Each unit requires 7 pounds (lbs.) of raw material A. Each month's ending inventory of raw materials should equal ________?

Answer 1

The ending inventory of raw materials for Boulware company is determined by calculating the total pounds of raw material A required for production and subtracting the pounds of raw material A used for production.

Step-by-step explanation:

The budgeted production of Boulware company calls for 6,600 units in October and 9,600 units in November. Each unit requires 7 pounds (lbs.) of raw material A. To determine the ending inventory of raw materials for each month, we need to calculate the total pounds of raw material A required for production in each month and subtract the pounds of raw material A used for production.

In October: 6,600 units x 7 pounds/unit = 46,200 pounds of raw material A required for production.

In November: 9,600 units x 7 pounds/unit = 67,200 pounds of raw material A required for production.

The ending inventory of raw materials for each month would be the difference between the total pounds of raw material A required and the pounds of raw material A used for production.