If there were 80000 pounds of raw materials on hand on January 1, 100000 pounds are desired for inventory at January 31, and 270000 pounds are required for January production, how many pounds of raw materials should be purchased in January?
A.250000 pounds
B. 370000 pounds 1
C.70000 pounds
D. 290000 pounds
Answer: Option (D) 290000 Pounds
Explanation:
Purchase required = Closing inventory + Production requirement - Opening Inventory
Purchase required = 100000 + 270000 - 80000
Purchase required = 290000 pounds
If there were 80000 pounds of raw materials on hand on January 1, 100000 pounds are...