Question

A company requires 220 pounds of plastic to meet the production needs of a product. It currently ventory for the beginning inventory. The desired ending inventory of 25 pounds of plastic in plasie is 70 pounds. How many pounds of plastic should be budgeted for purchasing during the coming period?

A. 195 pounds
B. 265 pounds
C. 245 pounds
D. 290 pounds
E. 175 pounds

Answer 1

C. 245 pounds

Step-by-step explanation:

The computation of the number of pounds purchased is shown below:

Number of pounds purchased = Material required for production - beginning inventory + desired ending inventory

= 220 pounds - 25 pounds + 70 pounds

= 265 pounds

We simply applied the above equation so that the number of pounds purchased could arrive