Tripod Exports, Inc.budgets on an annual basis for its fiscal year.The following beginning and ending inventory levels are planned for the fiscal year of July 1, 2016 to June 30, 2017: $\begin{array}{llcc}
& \underline { \text { June } 30,2017} & \underline { \text { June } 30,2016} \
\text { Raw Materials } & 3,000 \text { kilos } & 2,000 \text { kilos }
\end{array}$
Three kilos of raw materials are needed to produce each unit of finished product.If Tripod Exports plans to produce 280,000 units during the 2016-2017 fiscal year, how many kilos of materials will the company need to purchase for its production during the year?
A)841,000
B)843,000
C)840,000
D)839,000

Question

Tripod Exports, Inc.budgets on an annual basis for its fiscal year.The following beginning and ending inventory levels are planned for the fiscal year of July 1, 2016 to June 30, 2017: $\begin{array}{llcc}
&  \underline {  \text { June } 30,2017} &  \underline {  \text { June } 30,2016} \
\text { Raw Materials } & 3,000 \text { kilos } & 2,000 \text { kilos }
\end{array}$
 Three kilos of raw materials are needed to produce each unit of finished product.If Tripod Exports plans to produce 280,000 units during the 2016-2017 fiscal year, how many kilos of materials will the company need to purchase for its production during the year?
A)841,000
B)843,000
C)840,000
D)839,000

Quizplus · Accepted Answer

To produce 280,000 units, Tripod Exports will need 280,000 * 3 = 840,000 kilos of raw materials. Since the company has 3,000 kilos of raw materials at the beginning of the year and plans to have 2,000 kilos at the end of the year, it will need to purchase 840,000 - 3,000 + 2,000 = 841,000 kilos of raw materials during the year.

Tripod Exports, Inc Three Kilos of Raw Materials Are Needed to Produce Each