If there were 60000 pounds of raw materials on hand on January 1 120000 pounds are desired for inventory at January 31 and 410000 pounds are required for January production how many pounds of raw materials should be purchased in January?
A) 350000 pounds
B) 530000 pounds
C) 290000 pounds
D) 470000 pounds

Question

Quizplus · Accepted Answer

To calculate how many pounds of raw materials should be purchased in January, we need to subtract the raw materials on hand from the desired inventory plus the raw materials required for production.

Desired inventory = 120,000 pounds
Raw materials required for production = 410,000 pounds
Raw materials on hand = 60,000 pounds

Total raw materials required = Desired inventory + Raw materials required for production - Raw materials on hand
Total raw materials required = 120,000 + 410,000 - 60,000
Total raw materials required = 470,000 pounds

Therefore, the answer is D) 470,000 pounds.

If There Were 60000 Pounds of Raw Materials on Hand