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Production of Product B has been budgeted at 200,000 units for November. One unit of Product...

Production of Product B has been budgeted at 200,000 units for November. One unit of Product B requires 2.5 lbs. of raw material. The projected beginning and ending materials inventory for November are: Beginning inventory: 5,000 lbs. Ending inventory: 70,000 lbs. How many lbs. of material should be purchased during November? A. 525,000 B. 548,000 C. 577,000 D. 565,000

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Answer #1
Product B budgeted Production 200000 Units
Raw material per unit 2.5 lbs
Total raw material issued for production = 500000 lbs
(200000*2.5)
Closing inventory 70000 lbs
Issued or used in production = 500000 lbs
Less : Opening invnetory -5000 lbs
____________
Material purchased 565000 lbs
____________
So, 565,000 lbs. is required to be purchased during november.
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