Direct materials inventories are kept in pounds in byrd company, and the total pounds of direct materials needed for production is 9,500. if the beginning inventory is 1,000 pounds and the desired ending inventory is 2,200 pounds, the total pounds to be purchased are

Respuesta :

10,700 lbs need to be ordered. 9500 is what will be consumed, add wanted inventory of 2200 subtract 1000 for 10700= (9500+2200)-1000

In order to meet its obligations, the Byrd Company should purchase 10,700 pounds of direct materials.

The company currently has 1,000 pounds in inventory and would like to have 2,200 pounds at the end of production.

The current period requires 9,500 pounds to be used in production.

The purchases needed to achieve all this can be found by the formula:

Ending inventory = Beginning inventory + Purchases - Direct materials used

2,200 = 1,000 + Purchases - 9,500

Purchases = 9,500 + 2,200 - 1,000

Purchases = 10,700 pounds

In conclusion, the company should purchase 10,700 pounds

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