RasDyne Chemicals has 40,000 pounds of krypton in inventory at the beginning of August.The company plans to produce 6,000 rack joints made out of krypton in August.If each rack joint requires 30 pounds of krypton and RasDyne wants 50,000 pounds of krypton in inventory at the end of August, how many pounds of krypton should the company plan to purchase during August?

Question

Quizplus · Accepted Answer

To determine how much krypton RasDyne needs to purchase in August, we need to calculate the total amount of krypton needed for production and inventory at the end of the month:

Total krypton needed = krypton required for production + desired ending inventory

krypton required for production = 6,000 rack joints x 30 pounds krypton per rack joint = 180,000 pounds krypton

desired ending inventory = 50,000 pounds krypton

Total krypton needed = 180,000 pounds + 50,000 pounds = 230,000 pounds krypton

Now, we need to subtract the krypton the company already has in inventory at the beginning of August:

krypton in inventory = 40,000 pounds

Therefore, the amount of krypton RasDyne needs to purchase in August is:

Total krypton needed - krypton in inventory = 230,000 pounds - 40,000 pounds = 190,000 pounds krypton

Therefore, the best choice is C, 190,000 pounds.

RasDyne Chemicals Has 40,000 Pounds of Krypton in Inventory at the Beginning