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, 2012 to June 30, 2013: 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 2012-2013 fiscal year, how many kilos of materials will the company need to purchase for its production during the year?

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, 2012 to June 30, 2013:  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 2012-2013 fiscal year, how many kilos of materials will the company need to purchase for its production during the year?

Quizplus · Accepted Answer

To calculate the total amount of raw material needed, we can use the following formula:

Total raw material = (Number of units) x (Amount of raw material per unit)

Total raw material = 280,000 x 3

Total raw material = 840,000

Therefore, the company will need to purchase 840,000 kilos of raw materials for its production during the year. The correct answer is C) 840,000.