Question

Swifty Corporation required production for June is 42000 units. To make one unit of finished product, three pounds of direct material Z are required. Actual beginning and desired ending inventories of direct material Z are 210000 and 240000 pounds, respectively. How many pounds of direct material Z must be purchased?

Answer 1

Purchases= 156,000 pounds

Step-by-step explanation:

Giving the following information:

Swifty Corporation required production for June is 42000 units.

Standard quantity= 3 pounds per unit.

Beginning inventory= 210,000 pounds

Desired ending inventory= 240,000 pounds.

To calculate the purchases, we need to use the following formula:

Purchases= production + desired ending inventory - beginning inventory

Purchases= 42,000*3 + 240,000 - 210,000

Purchases= 156,000 pounds